Abstract
The budget enforcement, as an important indicator for measuring the collection and use of fiscal funds, plays an essential role in the promotion of Chinese reform. However, in recent years, Chinese fiscal expenditure has shown the tendency of solidification, which slows budget implementation progress, makes a large amount of financial funds can’t be efficiently paid, and sharpens the contradiction between the coexistence of “shortage” and “precipitation” of funds. That is to say, in the practice of China’s budgetary expenditure, the expenditure solidification directly constrains the implementation effect of budget expenditure, making the expenditure cannot be effectively paid. Therefore, this paper starts from the existing problems in the fiscal expenditure, systematically analyzes the historical basis and current situation of China's fiscal expenditure solidification. Through the analysis, it can be found the recent fiscal expenditure shows the convergence trend. That is to say in the context of increasing economic pressure, China’s fiscal expenditure show a uptrend situation, instead of decreasing in response to the declined fiscal revenue. Moreover, in China, no matter in central government or local governments, the scale and structure of education, medical, health care and other expenses have shown the convergence trend. The phenomenon is called China’s fiscal expenditure solidification, and the reason for this phenomenon include the inertia of legally mandated expenditure, the flaws in transfer payments system, the unscientific and unstandardized budget management process, and the contradiction between policy and system arrangement and practice. And in order to solve the problem, it should be started from the top-level design, completing the relevant measures and strengthening modern budget management.
Highlights
In 2009, the news with the title of “China's financial sector will spend $2 trillion in a short period at the end of the year” discloses the relevant problems of Chinese budget expenditure
The Ministry of Finance of the People’s Republic of China immediately stated that they would firmly strengthen the management of fiscal expenditure, and prevent a large number of money being spent in a short period as the end of the year
In 2014, the policy of “Notification of measures to assess the progress of local budgetary expenditures” [2] was issued, which meant the gradual construction of the assessment system of budget expenditure progress and, at a certain degree, improved the budget expenditure effect
Summary
In 2009, the news with the title of “China's financial sector will spend $2 trillion in a short period at the end of the year” discloses the relevant problems of Chinese budget expenditure. Li Yan and Peng Chao: Research on the Causes and Responsive Measures of China’s Fiscal Expenditure Solidification the collection and use of fiscal funds, directly affect China’s reform progress and the arbitrariness or inefficiency in its implementation will weaken the legitimacy and effectiveness of the government enforcement. The fiscal expenditure solidification refers to the characteristics in some expenditure items on the demands and use of funds, like only increasing without decrease and lack of overall planning space, and as a result, some regions, departments and expenditure projects are financially constrained, while the budgetary arrangement in other areas, departments and expenditure projects is difficult to implement. [8] this paper starts from the current situation and problems in China’s fiscal expenditure, systematically analyzes the historical basis and situation of financial solidification and tries to help relieve the income and expenditure contradiction through the "expenditure side" of budget The fiscal expenditure solidification refers to the characteristics in some expenditure items on the demands and use of funds, like only increasing without decrease and lack of overall planning space, and as a result, some regions, departments and expenditure projects are financially constrained, while the budgetary arrangement in other areas, departments and expenditure projects is difficult to implement. [5,6] The reasons behind this can be classified into three aspects, the root reason, system reason and technological reason. [7] And to alleviate the current fiscal revenue and expenditure contradiction lie in the acceleration needs to accelerate the expenditure progress and break the expenditure solidification and uplift the capital usage efficiency. [8] this paper starts from the current situation and problems in China’s fiscal expenditure, systematically analyzes the historical basis and situation of financial solidification and tries to help relieve the income and expenditure contradiction through the "expenditure side" of budget
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