Research On Centralized Payment Of Treasury In Hekou District, Dongying City

China's market economy never stops to develop,however,the original financial fund management is not satisfying,which is weak in decentralized management,capital precipitation and regulatory failures.Financial funds will be turned over to the state for unified management in the treasury centralized payment system.When budget units need to allocate the funds to the supplier or individual,they use the system.The treasury centralized payment system fundamentally improve the efficiency and transparency of financial funds,and make government regulation more powerful,which is helpful for the government to establish effective supervision and alert mechanism,and enhance the rigid government budget execution.The treasury centralized payment system is an institutional innovation,which satisfy demands of public finance.So,a centralized treasury payment system reform is imperative.The theoretical basis of this paper is the public finance theory,principal-agent theory and institutional innovation theory.It combines three research methods: literature research method,case study method and comparative analysis method.This paper systematically expounds the background and significance of the reform of treasury centralized payment system in our country.Then,the author detailed the process and successes from the reform of Hekou District.However,many kinds of problems do exist.These problems can be summarized as followed:more money should be included in the system,lack of talents with both financial and information skills,departments budgets are hard to meet the requirements of the treasury centralized payment system,the problem of information constructions,and the poor service of agent banks.The reasons are as follows:1)the contradiction between the local interests and the public finances,2)the information asymmetry between the financial departments and the representative banks.3)Department budgets cannot satisfy the need of the treasury centralized payment reform.Secondly,through comparison,analyzing and using other districts' practical experience,like Dongsheng district of Ordos,Xinyang city of Henan province,Lunan district of Tangshan city and Xiangsihu district of Nanning city,the author summarize the best practices in these regions to promote the reform of Hekou District.Finally,the author gives some suggestions to solve these problems,specific contents include:Expanding the scope of the reform to include the township funds,improve the treasury centralized payment system,strengthen the information system,deep the reform of treasury centralized paymentsupporting system,establish a scientific and reasonable supervision and management system,establish the talent training mechanism and strengthen the management of the agent bank.