Research On The Information Openness Of Financial Budget And Final Accounts Of H City From The Perspective Of Principal-agent Theory

In recent years,the information openness of financial budget and final account has become an important part of China’s deepening the reform of the fiscal and taxation system and the establishment of a modern fiscal system,which has received great attention from the party and the government and widespread attention from all walks of life.The Nineteenth National Congress of the Communist Party of China emphasized that to accelerate the establishment of a modern financial system,it is necessary to establish a comprehensive,standardized,transparent,scientific,and binding budget system.The openness of financial budget and final account information is an important measure to implement the 19 th National Congress of the Communist Party of China on establishing a modern fiscal system,a core requirement for the reform of the budget management system,and an important driving force for the modernization of the national governance system and governance capabilities.This paper firstly discusses the related concepts of the openness of financial budget and final accounts and the connotation of the principal-agent theory.Then it focuses on the analysis of the existence problems on the basis of summarizing the practical achievements of H City in promoting the publicity of financial budget and final accounts.The existence problems include the openness of financial budget and final accounts in H City is uneven,the overall quality of openness is not high,the openness is not standardized enough and the authenticity needs to be tested,the quality of budget and final accounts data needs to be improved,and the public participation is low.The causes of the above problems include the moral hazard of agent’s rational choice,the imperfect participation and restraint mechanism,and the imperfect incentive compatibility mechanism from the Perspective of Principal-agent Theory.Finally,in order to improving the openness level of local financial budget and final accounts in China,it is proposed to optimize the openness of financial budget and final accounts of H City and the other cities from three aspects: strengthening the rights of clients,improving the participation and restraint mechanism,and improving the incentive compatibility mechanism.