Dissertation > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Expenditure

The way to achieve the benefits of public spending in China

Author HongXiangDong
Tutor PanHua;ChenZhiFang
School Kunming University of Science and Technology
Course Management Science and Engineering
Keywords public expenditure efficiency government budget performance budget public expenditure legislation
CLC F812.45
Type Master's thesis
Year 2006
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Public expenditure effect, which includes economic effect as well as social effect, is an integrated indication for social-economic effectiveness. Public expenditure effect can be summed up as the following three aspects: 1) the effect of gross public expenditure scale on the social economic development, 2) the effect of a rationalized public expenditure structure on the social economic development, and 3) the effect of the validity of the utilization of public finance on the social economic development. In reality, however, the administration of Chinese government on public expenditure relatively lags behind the social economic development and problems of deficiency in public expenditure still exist. These problems include: 1) the inconsistency between the increasingly expanding of public expenditure and the increase of gross financial income, 2) ineffective use of public expenditure that causes wasting of public finance, and 3) current pattern of public expenditure allocation is inconsistent with the requirement called for the transition of financial functions by the Chinese financial reform. Government budgeting, in the form of a basic plan for financial income and expense, is actual a fundamental instrument for public expenditure administration. Therefore, aimed at establishing a new government budget system that is based on the foundation of standardized budgeting, implementing with constraints and appraised final accounts, make efforts in the explorations of these aspects such as changing concept of public budget management, innovating new administration systems and evaluating the performance of the utilization of public financial resource, are the focus of government budget reform in China.Based on the theoretic analysis of the characteristics of public expenditure and its benefits, according to the logic relationships among the scale, structure and utilization of public expenditure, this thesis discusses the current existing problems in scale, structure and utilization effectiveness of Chinese public expenditure, bring forwards some budgetadministration measures for the purposes of insuring a moderation scale of public expenses, optimizing public expense structure and carrying out public expense benefit. Performance budget is one of the measures for performance-lead public expense and it is helped to improve the effectiveness in public expense. It is also helped to bring public focus to the quality and cost of services provided by the governmental departments so as to facilitate the standardization and democratization of government decision-making procedures. To put an administration measure in practice efficiently, it must be ensured by a regular organizational and legislative system. Based on the proposed measures and procedures, in allusion to the current status of intenerating constraints on budget control of our country, this thesis makes further detailed analysis into the legislative requirement for public expenditure administration and points out that it must start with the actualization of legislative administration on public expenditure budget. By doing so, some achievements can be accomplished such as forming a specific restriction on governmental financial behavior, formulating the scope and scale of governmental activities, and avoiding government from exercising its additional effect on the allocation and use of public resource outside its activity scope defined by marketing by right of its political and financial strength.

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