New Budget Law,Transfer Payment And Budget Deviation

Budget deviation is the difference between the government final accounts and budget revenues and expenditures.For various reasons,the differences between budget and final accounts are often regarded as normal phenomena,but the excessive deviation of budget will still have adverse effects.After the reform of tax sharing system,the local government has less tax,but at the same time,it has to bear more power,which leads to the high budget deviation in China.In the case of imperfect financial system and relatively lagging behind in legal system construction,governments at all levels control the fiscal revenue and expenditure for regional development,so that the gap between the budget and final accounts is expanding.At present,China’s economy has entered a new normal,from pursuing growth to quality.Public expenditure is an important part of China’s economic development,so improving the scientific budget preparation is the guarantee to ensure the high-quality development of economy.This paper will focus on the introduction of the new budget law to discuss how to standardize the budget management and reduce the budget deviation.Based on the data of budget deviation from 1998 to 2017,this paper makes an empirical analysis to examine the impact of the new budget law on budget deviation.This paper also discusses the role of transfer payment factors,and analyzes whether the relationship between transfer payment and budget deviation has changed with the introduction of the new budget law.In addition,this paper uses the composite control method to test the trend of budget deviation before and after the introduction of the law,as a robustness test.It makes the regression results more credible.According to the regression results,we can find that the introduction of the new budget law can reduce the degree of budget deviation,which shows that the construction of the legal system is of great significance to alleviate the situation of budget deviation.The amount of transfer payment can promote government expenditure,alleviate the situation of "less expenditure" of provincial government,and reduce the deviation of expenditure.Increasing the government’s disposable income can make the government no longer need to collect excessive fiscal revenue to use,and can also reduce the budget deviation.Moreover,the new "budget law" and transfer payment have a joint effect,and the two factors can jointly promote the reduction of budget revenue and expenditure deviation.At the same time,this paper also studies the impact of per capita transfer payment on budget deviation.Per capita transfer payment can weakly improve the deviation degree of budget revenue and expenditure,but the new budget law changes the impact of per capita transfer payment,and jointly promotes the reduction of deviation degree of budget revenue and expenditure.The main contributions of this paper are as follows: 1.to determine the new budget law can reduce the deviation of budget.The economic development of our country is still dominated by high-quality development,and the law plays an important role in regulating government behavior.Only in this way can the budget deviation be solved to ensure the healthy development of economy.In the future,laws and regulations still need to be built.2.the influence of transfer payment factors on budget deviation on the road of legal construction is studied.Transfer payment has an impact on fiscal revenue and expenditure,economic development in poor areas and the improvement of budgeting technology,which all have an impact on budget deviation.The reform of transfer payment in China should pay attention to the structure optimization of transfer payment,and at the same time,it also needs to pay attention to its impact on the budget.From the perspective of budget,we should optimize the transfer payment and improve the financial system of our country.