Public Administration: Challenges of Inequality and Exclusion Miami (USA), September 2003

Transcription

1 INTERNATIONAL ASSOCIATION OF SCHOOLS AND INSTITUTES OF ADMINISTRATION ASSOCIATION INTERNATIONALE DES ECOLES ET INSTITUTS D ADMINISTRATION GT-WG VI Public Administration: Challenges of Inequality and Exclusion Miami (USA), September 2003 L Administration publique Face aux défis de l Inégalité et de l Exclusion Miami (Etats-Unis), Septembre 2003 Scientific and Nomothetic: The Goal for Reformation on Budget System of China Cynthia CAI Economics Teaching & Research Department Chinese National School of Administration CHINA

2 Resume of the Author Cynthia Cai, female, Master s Degree on major economic law, graduated from the People s University of China. Profession: senior lecturer of Economics Teaching & Research Department, Chinese National School of Administration Part-time lawyer; counselor of Beijing Urban Construction Group; member of the question warehouse of the Examination and Estimation Center of CNSA; member of the World Bank technic assistant project the Exploitation and Research on the Course of National Senior Officer Training. The theory research on financial law institution, budget law institution and public procurement law institution are the author s main research points. Several theses are published by the periodical China Government Procurement, Economic Management, Legal Institution of Beijing Urban Construction.

3 Catalogue 1. The historical evolution and vicissitude of budget system in China 1.1 The historical evolution of budget management system The historical evolution of budget management system before the reform on tax-sharing system The reform on tax-sharing system i. Essential principles for the reformation on the tax-sharing financial system ii. The basic framework for the reformation on the tax-sharing financial system iii. Appraisal on the operation status: positive effects and faced problems i) Positive effects of the tax-sharing system reform ii) The main problems of the tax-sharing system reform 1.2 The vicissitude of the government budget system The system of budget and final account report The course of budget management under the rule of law The current reform on budget management i. The exploration and practice on the reform of budget management over the past several years ii. The initial efficiency estimate of the reform on the current budget management i) The positive efficiency about the reform ii) Limitations and drawbacks in existing of the current budget system 2. Structure the new scientific and nomothetic budget system 2.1 Scientific Scientific budget preparation method Comprehensive budget items system Rational budget cycle Scientific budget supervision system 2.2 Nomothetic

4 2.2.1 The current law should be modified and supplied The budget execution should follow the strict legal process The budget preparation should have normal actual standard and process under the law 3. The conclusion

5 Scientific and Nomothetic: The Goal for Reformation on Budget System of China Abstract The profound transformation over functions of the Government of China is happening. As the Core to the financial allocation system of the Government, the budget system will be inevitably adjusted according to the updated changes in government functions. Since the beginning of reform and opening up, a series of reformation on budget management system of China have been conducted, while on the other hand, the cursory management on the expenditure actually have not been totally transformed, thus cause the lower efficiency in the use of funds and relevant corruptive cases often be founded. In this paper, the author tries to make use of the evolution of budget system changes to illustrate the importance and necessity of the transformation on budget system to China especially in the period of transitional time caused by the reform. The author has analyzed the reformation on tax-sharing system and the reformation on budget management and estimated the positive and negative effects of them. The goal and model of budget system reformation are therefore proposed: scientific and nomothetic are two major necessary conditions to safeguard the positive effects resulting from the reformation. The former includes scientific budget preparation method, scientific budget subject system, scientific budget cycle and scientific budget supervision system. By reason that there is a largish distance between current budget law and the budget system reformation, the current law should be amended and supplemented. Furthermore, budget execution should conform to the strict legal process and budget adjustment should have normative essential standard and process under the rule of law. After the analysis the author draws the conclusion that although the budget system has taken shape initially over the past several years, there is a long distance between present and the goal of it. Development of the productive forces requires

6 scientificity and political system requires legal system. The reform on the economic system has a tight connection with the reform on the political system. The latter is very difficult, so is the former. It is not much realistic to reach a great leap forward at one step. The process of the reform should follow in a partial orderly way and step by step. There is a long way to go and hard work to be done before a scientific and nomothetic budget system could be established in China.

7 1.The historical evolution and vicissitude of budget system in China 1.1The historical evolution of budget management system 1.1.1The historical evolution of budget management system before the reform on tax-sharing system China has highly concentrative controlled revenue and expenditure system at the beginning of its foundation. The local governments have no power of finance. The 3-layer budget management system (the central government, the provincial and the municipal (prefectural) governments) had been carried out in 1953 and from then on the local finance had been established initially. From 1953 to 1979, being compatible with the central financial system, the local financial system has been changed several times. The powers of management adjusted between concentration and distraction time and again and the main line of it is carving up revenue and expenditure, managing according to different layers and emphasizing particularly on concentration. The reform on economic system had been expanded progressively since Apr The reformation on finance system was regarded as the breakthrough to the whole reform. Since 1980 the tax farming system according to different grades had been put into practice; thereby the concentrative controlled revenue and expenditure system had been broken and the mode of eating in one bowl had been changed into the mode of eating in separate bowl. This system had given play to the function of stimulating the initiative of local authorities and promoting the local economy development under the certain historical conditions. At the same time, the local financial strength had been enhanced The reform on tax-sharing system With the socialist market economy development, the system of contract according to different grades did not meet the requirements of reform and

8 development more and more. Since May 1993 the reformation on the tax-sharing financial system had been put into practice. i. Essential principles for the reformation on the tax-sharing financial system The ultimate objective to the tax-sharing financial system is to promote the establishment and development of the socialist market economy system and to enhance the sustained, stable and sound development of the economy. The essential principles for the tax-sharing financial system include 3 factors. 1, properly handling allocation relations between the central government and the local governments and accelerating the rational increase on financial revenue; 2, properly adjusting the financial power allocation in different areas, in a direction conducive not only to maintaining the rapid development of the developed regions but also to supporting the development of the less developed areas through the policies that tax return and transfer payments from central government to local governments; 3, sticking to the principle that combining the uniform policies with management according to different layers. The power of legislation is concentrated upon the central government to ensure that the orders of central government can be executed conformably. ii. The basic framework for the reformation on the tax-sharing financial system Since 1994 the budget management system of tax sharing had been put into practice. Its primary contents includes 4 aspects: i) On the basis of dividing powers of affairs, divide the ranges of financial expenditure. ii) Divide the revenue according to tax kinds and make clear the revenue ranges of all levels. According to the principle that combining powers of affairs with powers of finance, divide revenue between the central government and the local governments. iii) The central government and the local governments set up two series of revenue organizations. The national taxation bureau and the national customs

9 bureau take charge of levying the central settled revenue and the revenue shared between the central and the local and the local taxation bureaus take charge of levying the local settled revenue. iv) The central government returns revenue to the local governments. In order to keep the local vested interests structure, there are some tax return methods in the tax-sharing system. iii. Appraisal on the operation status: positive effects and faced problems With these years operation, the tax-sharing system has taken shape initially in China. The transition was completed steadily from old financial system to the new financial system. The reform progress of the market economy system was promoted effectively. i) Positive effects of the tax-sharing system reform --Established the framework of the tax-sharing system and formed the base of the standardized and nomothetic financial system. The framework of the tax sharing system has been build initially through the entire central and local levels financial governments. The new system is adapted to the internal requirements of the market economy. It helps develop the standardized Chinese finance system. --Established the new increase system of the central finance revenue. Enhanced further the state's macroeconomic control power. The steady increase system of the central finance revenue has been formed through the rational division of tax kinds. The central finance takes charge of powers of tax reduction and relief. The mode and way of control have more diversity, pertinences and agility. The methods that central government transfer payments to local governments are so various and standardized that the reallocation function of the central revenue has been strengthened. --Mobilized the initiative of all quarters of central and local governments and promoted the rapidly increase of finance revenue. The tax-sharing system made

10 clear the powers of affairs and powers of finance of all levels. The ranges of all levels finance revenue and expenditure has been formed rationally. --Promoted the optimized allocation of resources and the rational adjustment of the industrial structure. The form of uniform large market has been enhanced. The control by the governments has been lightened to a certain extent. It helps realize the separation of government functions from enterprise management and enhance the rational adjustment of the industrial structure. --The new system plays the positive role of controlling polarization of wealth among different areas. The uniform system establishes the mode that strengthening the central financial power by the concentration of value-added tax and excise increment. It plays the role of balancing the areas difference dynamically. --The allocation relationship between government and enterprises is turned into the rule of law. It is created the condition for forming the modern enterprise system. The tax law defines the relationship between them and the obligations, rights and interests between them are more definite. ii) The main problems of the tax-sharing system reform Some problems have appeared during the tax-sharing system operation. --The proportion of shared financial power that the local governments can obtain from the revenue increment descends year after year and the fall speed is comparative fast. By reason that the power of affairs is not clear and the power of affairs is not consistent with the power of finance, the expenditure that the local governments take in hand increases.

11 --The problem that polarization of wealth among different areas is not settled efficiently. The tax-sharing system plays a certain positive role of controlling polarization of wealth among different areas. Following the method of radix number, considering the steady transition and the convenient operation, the old and new system run at the same time; and the transfer payments system has not formed normatively. Therefore the polarization of wealth is enlarged ulteriorly 1.2 The vicissitude of the government budget system The system of budget and final account report Since 1955 to 1960, the budget and final account are reported by State Council to the People s Congress. From 1961 to 1965, by reason that China is in the difficult period, the system of budget and final account is abnormal. Since 1966 to 1978, influenced by the Culture Revolution, the finance system is destroyed entirely. The sole budget draft does not exist and the financial budget is only listed in the national economy plan as the plan of revenue and expenditure. The system of budget and final account began to resume in The system of national budget and final account report has been fixed radically since Ministry of Finance reports the execution of last year and the budget draft of this year to People s Congress in March per annum; the national final account of last year is reported to the Standing Committee of the People s Congress from May to August per annum The course of budget management under the rule of law China has no special law in the field of budget management for a long period. The budget and final account provisional regulations is enacted in 1951, which is continued to execute for 40 years. There are many problems in aspects of preparation, examination and approval, execution, adjustment, final account and

12 supervision and so forth. For instance, the process of budget preparation is not clear; the rights and obligations of budget management are obscure; the process of examination and approval is not strict; the budget execution is not serious; and the budget supervision is soft. Thus the budget is lack of authority and solemnity. The national budget management regulations is enacted by the State Department in The regulations play the positive role of confining budget conductions, strengthening the budget management, standardizing financial discipline. Being an administrative code, its power is softened to a certain extent. The problem of inefficient budget management has not been settled radically. The budget law of the People s Republic of China is put in force in It is the first formal law on financial management in China; and it becomes the important symbol of the nomothetic, standardized and scientific budget management of China. The main content of it includes 4 aspects: make clear the rights and obligations of budget management of all levels People s Congress; make clear the structure of Chinese budget-chinese national budget is composed of central government budget and local governments budget; the examination and approval process of budget is straightened; the budget management system of tax-sharing is defined The current reform on budget management i. The exploration and practice on the reform of budget management over the past several years The reform on department budget preparation, which is pushed in central and local areas in succession, is the most important reform after the tax sharing reform. The central government has tried to prepare the department budget in its four sectors since It becomes the symbol of the beginning of this time reformation. The local governments are exploring the assortive methods according to all levels and all departments. The content about the reform is composed of several aspects:

13 i) The department budget should become the primary form of budget preparation. The department budget preparation is the basic requirement of the reform. Its main content includes: --The preparation of department budget should be organized by its sector. The sector that has the relationship of appropriation and recipience with the same level budget is regarded as the main body of department budget preparation. One sector has one budget; all the revenue and expenditure of the sector should be prepared in one budget; and this budget should embody all the things of revenue and expenditure of the sector. --The preparation on revenue budget should include all the financial resources of the government. Traditionally, the government budget of China only means the inner budgetary funds; a large amount of extra budgetary funds and other revenue are beyond the budget supervision. The entire efficiency of the resources allocation by the government is reduced. Department budget should be an integrative budget, which includes all the public resources. It is composed of not only the inner budgetary funds but also the extra budgetary funds and any other funds. --The preparation on expenditure budget should be subdivided into the specific items. --The approval mode should be changed; the uniform approval department should be established by Ministry of Finance. ii) Zero-base budgeting preparation should be the primary method to the expenditure budget preparation. The method of base adding increase has been adopted for several decades as the main method of budget preparation in China. This method is on the basis of factual expenditure of last year, without considering whether the base is rational or not. By reason of the financial power increases a little every year and the incremental part has a very small effect on the base, the allocation structure of the financial funds among the departments is steady.

14 Zero-base budgeting reestimates the necessity and the social and economy benefit. It isn t bound by the budget items and amounts last year and prepares the budget just on the basis of zero-base. This method pays more attention to the current objective factors; it heightens the veracity of budget and strengthens the scientificity of the budget management. iii) Treasury single account system is the primary form to budget execution. The sharing collection and payment system has been adopted for a long period in China. The revenue is drained easily; it is short of supervision beforehand in expenditure period. Treasury single account system is the primary form of modern treasury management system. It is the management system that concentrating collection and payment of the financial funds. According to this system, a uniform treasury single account should be founded by Ministry of Finance; all the revenue should be collected to this account and the main financial funds is paid to the products or services provider directly. Under this system, the efficient budget execution organization, the scientific information management system and the entire supervision system are established iv) Multiple budget system is the important tool by the government to control the economy Multiple budget system is formed in response to the requirements of the enlarged modern government functions and the macroeconomic control by the government. It is regarded as an important control tool to establish and improve the macroeconomic control system during the process of founding socialist market economy by the Chinese government. It is composed of government public budget and state property management budget. Its functions are heightening the definition of the allocation on national financial funds, strengthening the government macro analysis and control, helping the People s Congress and the public find out and supervise the usage of the financial funds. The local governments are required to be balance on the two kinds of

15 budget; therefore multiple budget becomes the powerful tool of central government on macro control to the local governments. Multiple budget helps define the expenditure character, limit the nonproductive consumptive expenditure, put the limited funds on the best beneficial project according to the national conditions, therefore multiple budget becomes the tool of allocating efficiently the government financial resources. ii. The initial efficiency estimate of the reform on the current budget management Over the past several years the reform on budget management system of China has achieved a success on the whole. The concept of budget has been built; the basic framework of department budget has been formed; the content and scope of budget preparation have been adjusted, the new management method and mode have been practiced; the budget preparation has been subdivided into the specific units and items; the binding force of budget has been strengthened and the management of financial funds has been standardized. i) The positive efficiency about the reform --It helps establish the finance management execution system tallying with the requirements of the market economy; and it helps promote the development of the socialist market economy. The design of whole framework complies with the principles of nomothetic, scientific and standardized. The separation between the preparation and the execution has been realized relatively; the functions of budget preparation have been strengthened greatly; the functions of control and supervision to the budget execution have been consolidated. --It helps promote finance management under the rule of law and democracy. According to the new budget management mode, the allocation and usage of the financial funds are open, transparent and democratic. The conducts of the governments, the financial departments and the budget departments have been bound more.

16 --It helps optimized the allocation of resources and strengthen the macro control power of the government. Adopting the method of zero-base budget can arrange the limited funds to the key projects and avoid the waste of funds. Adopting the scientific allocation method can fasten the budget execution speed and heighten greatly the usage efficiency of the funds. --It helps enhance the management of the department and heighten the entire management level of the government. The new system requires the department renew its current management method on funds and finance. The department must make clear its own circumstances in order to prepared the budget specifically; and the fundamental management of the department has been strengthened. The fact that the budget preparation subdivides in special projects promotes the department to pay more attention to the investigation and research on industry and project development plan. Thus the most important, most critical and most feasible projects can obtain the finance support and the usage efficiency of financial funds can be heightened further. --It helps create the conditions to punish corruption and promote to construct the honest and clean government. The reform can settle entirely some problems that break the financial rules and disciplines. ii) Limitations and drawbacks in existing of the current budget system Under the influences of the facts that the economy development level, the current management system, the extent of budget nomothetic, the benefits allocation structure and so forth, there are so many problems and drawbacks in the current budget system which is performing the reformation. --The budget items are not completed, detailed and regulated enough. The design of the current budget items on revenue and expenditure is too simple that the budget draft preparation is not detailed. Even the phenomena that using funds without budget or approving while using is exist. Additionally, the transparency of

17 budget preparation is so lower that the representation cannot make clear the content of budget. Thus the consideration and supervision to the budget is just a form. The simple budget cannot be executed strictly in the link of execution. The funds can be used beyond the budget items and the budget is without binding force entirely. Furthermore, the fact that the extra budget funds cannot be embodied in the budget draft sometimes leads to the subsequence that the government budget is not entire, a large amounts of financial funds is out of the supervision from the People s Congress, the government s supervision is softened and the macro control power of the government budget is weakened either. --Budget cycle is not rational. During the long period government budget practice, China has formed the relative steady government budget procedure. The content of it is: 1, the whole beginning and the end time of the government budget cycle: the next annual budget is began to prepare at the fourth quarter every year; the standing committee of the People s Congress examine and approve the last annual final account at May or June every year; the whole cycle requires about 21 months; 2, the time the beginning and the end of budget preparation is from the fourth quarter every year to March the next year; 3, the time that the People s Congress examine and approve the budget draft is during the period that the congress is convened the March every year; 4, the time the beginning and the end of budget execution is from Jan. 1 st to Dec 31 st every year; 5, the time the beginning and the end of government final account preparation, examine and approve: the final account draft is arrayed to prepare by the Ministry of Finance at the fourth quarter every year and it will be examined and approved at about May the next year during the period that the congress is convened by the standing committee of the People s Congress. There are some problems about the budget cycle: the first, the span of time is relative short although it crosses 3 years. It is only 9 months that the budget is

18 prepared, examined and approved and final account is examined and approved except for the time that budget is executed. The second, the time that government budget is prepared is short. From the order of preparing the draft is arrayed to the draft is examined and approved, the total time is only 7 months; and the time the draft is preparing actually is shorter to 7 months. Much time is used to collect the information gradually by the lower sectors to the higher sectors. The draft prepared in so short time cannot be specific enough. To keep the schedule required by the budget preparation, the lower sectors drafts are prepared by the higher sectors instead. Thus the veracity and facticity of the budget cannot be ensured. The third, the time that the budget draft is examined and approved by the legislature is too short. It is during the period that the congress is convened the March every year only. There are so many items to be examined and approved on this congress that there is no much time to be used on the budget draft. The fourth, the budget lags behind the budget execution. The time of the budget draft approved is behind the time of the budget execution for about 3 months. The revenue and expenditure are executed without budget in these 3 months. The seriousness and authority of the budget as a legal document is damaged greatly. The fifth, the budget cycle lacks of legal regulation. The fact that the time that the budget draft is examined and approved is not consistent by different congresses leads to the subsequence that the budget draft approved by the legislation is not consistent with the one approved by the local congress. --The supervision functions from the congress are weak. Not only in the period of budget examination and approval, but also in the period of execution, there is no efficient supervision from the congress. In the budget practice, by reason of the regulations own drawbacks and lacking of rationality; by reason of the budget preparation is too simple and careless; and by reason of the concept that the budget should be executed strictly has not been accepted commonly, the budget is executed

19 unbendingly and the supervision functions from the congress are weak for a long period. 2. Structure the new scientific and nomothetic budget system Budget documents is the financial reports approved by the legislation and it primary character is law. Structuring the scientific and nomothetic budget system is the entire goal that will be realized through the reform 2.1Scientific 2.1.1Scientific budget preparation method The modern scientific budget preparation methods just like standard income calculation budget, zero-base budget and performance budget should be adopted commonly in the department budgeting. In detail, the method standard income calculation budget should be used on preparing the revenue budget; the method zero-base budget and performance budget should be used on expenditure budget Comprehensive budget items system The reformation on revenue and expenditure items should not only embody entirely all the government s revenue and expenditure actions but also strengthen the economy analysis functions on revenue and expenditure classification. The macro economy management level of the government and the financial transparency should be heightened. Meanwhile, the national circumstance should combine with the international tradition. The design of government budget revenue and expenditure items should meet the requirements of the classification according to departments, functions and economy characters. The department classification should define the tasks of the funds manager; the funds of inner budget, extra budget and incomes and payments self-owned by the administrations and institutions should be included in the classification scales of the government revenue and expenditure contents. The function classification should show the circumstance of the government expenditure

20 in order to embody the government s main principles, the expenditure structures and funds usage directions during a certain period. The economy classification should show mainly the economy characters of the revenue and expenditure and make clear the resources of the revenue and the usage manner of the expenditure Rational budget cycle The law of standard budget cycle law or the law of government budget procedure should be instituted. All the links of the budget cycle should be defined detailedly and particularly. The questions hereinafter should be paid more attention to. The first, on the basis of dividing the budget process into 4 links (preparation, examination and approval, execution and adjustment and final account), all kinds of concrete process should be defined particularly; especially, the process that the budget draft be examined and approved by the legislation should be improved and consummated gradually. The second, the span of time of the budget cycle should be prolonged greatly; especially in the links that the budget prepared and the budget examined and approved. The government budget should become the TURE budget; that means the budget should pass the examination and approval by the legislation before the beginning of the budget year. The negative influence brought by the factor of time must be overcome. The third, the time the legislation interpose the job of budget preparation should be put ahead in order to enlarge the functions of People s Congress on the government financial decision making. The fourth, consistent with the principle of different levels budget, the standard local government budget cycle should be formed Scitific budget supervision system Budget supervision means supervising to the whole process of budget preparation, budget execution and final account. The system of budget supervision includes 4 layers: the supervision from the congresses, the supervision from the auditing organs, the supervision from the finance departments, and the supervision from the

21 budget departments. The congresses and the governments supervise the standardization and ruling under the law of the budget; the auditing organs supervise the validity, facticity and veracity of the budget; the finance departments supervise the scientificity, applicability and efficiency of the budget; the budget departments supervise their lower sectors budget execution circumstance. The supervision from the finance departments should be strengthened; the obligation division on inner finance should be adjusted and the force of supervision to the inner or outer should be enhanced. The finance supervision new system of many dimensional should be established with the mode combining the inner finance with the outer, combining the special supervision of inner finance with the ordinary supervision, separating the functions relatively from each other, being restrict by each other and promoting each other. 2.2 Nomothetic 2.2.1The current law should be modified and supplied. The budget law of China is the sole regulation on budget management. Budget actions are bound by it. But, the rapid development of market economy and the gradual promotion of the reform lead to the subsequence that there are some contradictions between the regulations and the current budget practice. Furthermore, some concrete actions in budget executive practice lack of the specific regulations. The law should be modified and supplied at the proper time in order to make the government budget have real law force and to establish the nicer order of the socialist market economy The budget execution should follow the strict legal process The budget is the formal finance report approved by the legislation. It is no denying the fact that it belongs to legal document on strict concept. It should be executed seriously according to the law. The phenomena that the budget funds allocated arbitrarily should be changed entirely. The expenditure should be executed according

22 to the budget items and accounts. The budget cannot be broken through optionally, cannot be adjusted at will and cannot be used on other purpose. The actions allocating funds without budget or beyond the amount of the budget are not permitted. The actions of anti law or anti financial discipline should be punished stoutly under the rule of law The budget preparation should have normal actual standard and process under the law. The special characters of budget adjustment should be defined. Budget adjustment shouldn t become the common phenomena on the period of the budget execution. The too frequent adjustment can damage greatly the authority of the budget law. The current budget law of China has not defined the special conditions on permitting of budget adjustment. Therefore, the application, examination and approval of budget adjustment act under an uncertain process. The special emphasis should be put in the budget law that there is no permission to adjust the budget unless under the great important reasons that the circumstances occur related with the national economy development or the national defense security. The reasons to adjust the budget include 2 aspects: the one is special circumstances just as the economy increasing speed is too quick or too slow, or the main ratio relation on national economy is not concerted. The other one is urgent circumstances just as the war, the civil strife, and the serious natural disaster. The different examining and approving processes should be made according to the different circumstances. The special process should be made on budget examination and approval in case some accidental urgent circumstances occur. 3.The conclusion It is a general complicated goal system to achieve the scientific and nomothetic budget system. There is a long way to go and hard work to be done before the system could be established in China.

23 Although the budget system has taken shape initially over the past several years, there is a long distance between present and the goal of it. Development of the productive forces requires scientificity and political system requires legal system. The goal and model of budget system reformation are therefore proposed: scientific and nomothetic are two major necessary conditions to safeguard the positive effects resulting from the reformation. The former includes scientific budget preparation method, scientific budget subject system, scientific budget cycle and scientific budget supervision system. By reason that there is a largish distance between current budget law and the budget system reformation, the current law should be amended and supplemented. Furthermore, budget execution should conform to the strict legal process and budget adjustment should have normative essential standard and process under the rule of law. The reform on the economic system has a tight connection with the reform on the political system. The latter is very complicated, so is the former. It is not much realistic to reach a great leap forward at one step. The process of the reform should follow in a partial orderly way and step by step. The reform on budget system concerns many problems on political and technical field and it requires the government make a great decision to meet.

24 Bibliography 1. Public Budgeting Management, Yongjun Wang, published by Economy & Science Press, Public Budgeting Systems, Robert D Lee, published by Tsinghua University Press, 2002