Study On The Governmental Budget Compilation Of Shenzhen City Under The New Chinese Budget Law

Finance is fundamental and significant of state governance. Government as the public goods supplier should take costs and quantities into consideration. In addition, the scales and kinds of public goods need to be carefully thought out as well as the way of supply. Government budget is essentially the taxes levied from the public as the cost for public goods supply. With its limited funds, government invests on urgently needed public goods and the products with long-term development potential through resource allocation. It helps pushing the social economy development and insuring people's live hood. Its ultimate goal is to meet the public's demands for public goods. Principal-agent theory believes that the compilation of government budget, the examination, implementation and final accounts should be under the legislature and public's supervision. Therefore, the Chinese government is fully aware of the significance to deepen the reform. Deepening the financial and taxation system reformation and setting up the modern financial system were mentioned on the Third Plenary Session of the 18th Central Committee of the Communist Party of China. The Chinese budget law was amended in August 2014, and was officially put into practice on the 1st January,2015. The new budget law has several claims on the budget compilation: to practice full-covered budget management; to bring the government revenues and expenditures into budget management, and to achieve the connection between the governmental funds, the state-owned capital management budgets, the social insurance funds and the general public budgets; to regulate the local government debts by applying quota management; to increase budget publicity by fully disclosing the contents of the budget; to improve budget control by establishing cross-year balanced budget mechanism; to refine the transfer payment system in order to boost the equality of basic public services; to constraint expenditure budget and to standardize budgeting subjects. Therefore, Shenzhen city has quicken up the pace of budget management reformation since 2015, which pursuing national treasury centralized payment comprehensively, deepening the two lines of revenue and expenditure reform, strengthening the development of the Golden Fiscal Project, thoroughly widening the department budget range, further regulating the basic expenditure budget compile and so on reform measures. These factors have made the government budget management meet the stipulation of the new Chinese budget law more. Through the analysis on the governmental budget compilation of Shenzhen city, it has been shown that Shenzhen governmental budget compilation is basically in line with the new Chinese budget law. It reflects the situation of revenue and expenditure of Shenzhen city comprehensively. The priority expenses are guaranteed. These manners are contributed to increase publicity and rationality of the budgeting contents. However, there are situations when the governmental budget compilation of Shenzhen city cannot meet the needs of reality under the government budget legal construction. The government correlation work has not been positively completed. The cross-year balanced budget mechanism has not been fully installed neither. Performance budgeting has not been applied well enough. The open contents also need to be refined, and so on. As a result, I have found the direction to improve the existing problems of Shenzhen government budget. And I have also listed some measures for it. For instance, to strengthen the construction of the Government Budget Management Act of Shenzhen city, and to install the cross-year balanced budget mechanism. A mid-term financial planning and management can be established and to run the performance budgeting pattern. The government can also adjust the budget timetable; refine the correlation work and perfect the budget contents as well as increase publicity. Changing the budgeting method, improving the budgeting integrity and increasing public participation can be put on schedule too.