China's Budget

China’s budgetary system

Year III Finance and Banking

Balea Calin
Dobrovolschi Natalia

2012

Content

Introduction………………………………………………………………..pg 3
Traditional Budget Accounting…………………………………...……… pg 3 1.Taxonomy of Chinese Accounting……..…………….......................... pg 3 1.1 The Domain of Budget Accounting……….…………...………... .pg 3 1.2 Chinese units……………………………………………………... pg 4

2. Public Financial Management Process……………………..……….. pg 4

Conventional Budget Accounting …………………………………………pg 5 1. Overall and Unit Budgets…………………….…………………….. pg 5 2. Characteristics of the Chinese Budget Accounting System ….….…..pg 6 2.1 Accounting as a Budget Tool…………………….…………….. pg 6 2.2 Characteristics…………….…………………….……………… pg 7

The 1994 Budget Law………………………………..…………………… pg 8 1. Scope…….……………………………………………………….....pg 8 2. Institutional structure…………………………………………….....pg 8 3. Budget policy……………………………………………………….pg 9 3.1 General Policy…………………………………………………. pg 9 3.2 Separate Revenue System……………………………………....pg 9 3.3 Dual Budgeting System………………………………………...pg 10 3.4 Functional Classification of the Budget………………………...pg 10 3.5 Increased Budgetary transparency………………………………pg 11 3.6 Increased Effectiveness in resource utilization………………….pg 11

Further development………………………………………………………..pg 12

With almost 1,331,349,519 million people, China has 22 percent of the world population.
Among them are 1,800,000 accountants working in the almost 500,000 administrative agencies and public service institutions in the public sector, and many more are in state enterprises.
The rapid and sustained growth of the Chinese economy produced by economic reform since 1979 ironically has resulted in a weaker public sector beset with fiscal woes. As recently as the early 1980s a World