The Management Of Public Expenditure On Official Overseas Trips,Vehicles For Official Use And Official Hospitality From The Perspective Of Principal-agent

The problem of Public Expenditure on Official Overseas Trips,Vehicles for Official Use and Official Hospitality（PEOTVH）involves party and government offices,enterprises and institutions.If not controlled,the amount of financial waste is staggering every year.PEOTVH runs counter to the fine tradition of the Chinese nation’s diligence an thrift,and is incompatible with the party’s purpose of serving the people.It is characterized by concealment,long-term and complexity,and needs to break the resistance from vested interests to control it.In 2012,the Political Bureau of the CPC Central Committee reviewed and approved eight regulations for improving work style and maintaining close ties with the masses.At the same time,the work of the reform on official reception is also proceeding in an orderly manner in China.Therefore,this paper takes the promulgation time of the Eight Regulations as a watershed to study the governance of PEOTVH in China since the 18^thNational Congress.After the implementation of the Eight Regulations,the PEOTVH diverted from light to dark,and the place of PEOTVH transferred from high-end hotels and clubs to the internal canteens and training bases of the institutions.The expenses of PEOTVH are reimbursed through secret channels and the excess invoices are split into multiple reimbursement.These have brought greater challenges to the management of PEOTVHs.This paper points out that there are four reasons why the BPE of China is difficult to control.Firstly,the principal-agent relationship is confusing.Controlling the BPE involves financial,taxation,discipline monitoring and auditing.These links are led by different agencies,forming a multi-head management.Secondly,there is insufficient pre-emptive and post-regulation of PEOTVH.Thirdly,the ability of agents to perform their duties is weak.The NPC’s review of the budget lacks professionalism,and the performance of the discipline inspection agencies is affected by many factors.Lastly,information asymmetry provides favorable conditions for agents to banquet at public expenses.The PEOTVH is not a problem that cannot be completely cured.In some developed countries or regions,such as Denmark,Canada and Chinese Hong Kong,there are few cases of PEOTVH in a years.These countries or regions have differences in history,culture,and political systems with China,but this is not the root cause of the difficulty of radicalizing the PEOTVH.In order to completely solve the PEOTVH in China,this paper put forward four suggestions.At first,the principal should strengthen the evaluation mechanism for agents and improve the ability of agents to perform their duties.The second,to establish a diversified internal and external supervision system based on government supervision and PEOTVH game model,and promote discipline inspection,audit,NPC,tax,and finance departments.In the end,we should improve the governance system and the information disclosure system,establish the ideology of public officials and thrift,and form a long-term mechanism for managing public funds.