Interview | Finance Division, deputy director of the Bai Jingming: seize the opportunity to reform the essay budget

Interview | Finance Division, deputy director of the Bai Jingming: seize the opportunity to reform the essay budget
Revitalize the stock of financial capital has become a priority.
June 10, the State Council executive meeting not only "clearly to promote the pooling of financial measures used to better play an active fiscal policy steady growth effect of structural adjustment benefit people's livelihood," is flashed eight pro-active fiscal policy initiatives urging efficiency.
"New Money" correspondent on financial issues related to stock funds interviewed Institute of Fiscal Science, deputy director of the Bai Jingming. He believes that, with a good stock of financial funds and not just to strengthen budgetary management, more importantly, to stimulate economic growth through the use of these funds.
Shapes and sizes
"New Money": financial capital stock issues for great concern, what are the main form of expression?
Bai Jingming: Financial stock funds refers Provision expenses but not the actual payment of financial funds, including the annual budget surplus carry-over funds, the financial gap funding (funding gap) during the year and so on. Financial stock funds involving public budget, the government budget funds and state-owned capital management budget funds in three parts. The current social insurance fund budget funds on the financial account management, not into the state treasury, but also an essentially financial capital.
Financial stock funds a variety of forms, including idle capital budget units at all levels of budget accounting book on the library at the end of the central bank treasury funds, commercial banks and the financial accounts of the balance of funds deposited in some of the suppliers, public project construction side the project bank account stock funds. These funds or government budgets has arranged row, but the actual implementation is not in place, is retained in the budget sector accounts or accounts of available funds; or the financial arrangements for the forthcoming disbursed, the funds remaining in the treasury of the central bank; or project store after the implementation of the budget unit accounts in surplus funds. Financial revitalize the stock of capital is the meaning of the full mobilization of resources the government has to raise funds arrangements, timely and accurate implementation of the budget, adjust the budget, choose the reform of the management system, really good use of the funds, with live.
"New Money": How big is the financial capital stock in the end? How the statistics?
Bai Jingming: stock funds because of financial accounting records scattered in different precipitation level budget units in different bank accounts system and accurately obtain the exact size of large financial difficulties stock funds.
However, the following sets of data show that a sizable financial stock funds.
First, the end of high treasury funds. The central bank balance sheet shows that since 2003, the treasury cash balance at an average annual rate of growth of 37%. As of the end of June 2013, the government in the central bank's treasury fiscal deposits reached 3.6 trillion yuan.
Second, a number of financial accounts. Many financial funds deposited outside the treasury of the financial accounts in commercial banks. National Audit Office released a report, 18 Sheng Benji established financial accounts up to 478, equivalent to 44% of their deposits to the Treasury's.
Third, the high level of carry-sector surplus funds. According to recent data released by the Audit Commission, 2012 104 departments of the central level there is carry-over balance of 39.64 billion yuan of funds; audit department budget covered 16% is not executed, the formation of carry-over funds 35.634 billion yuan.
Public Budget outstanding performance in the stock of capital transfer payments on funds. Rapid increase of higher levels of government transfer payments to lower the amount of money after 2000. In 2014, the central and local transfer payments has totaled more than 4 trillion yuan, accounting for nearly 40% of local fiscal expenditure. According to the budget arrangements, provision should be roughly balanced each quarter, but in fact, transfer payments from the central to the provincial allocated, some provinces and cities for the next disbursement is not timely, the formation of financial stock funds.
Particularly special transfer payments, there is a vertical and horizontal multi-level distributed management issues. Many slow disbursement of funds. Despite efforts to substantially reduce stock funds on financial policy orientation, but rather in the stock of the public budget increased year by year. In 2014 the central part of the public budget expenditure budget is not completed and thus the formation of a huge stock of capital. For example, social security and employment completed 98.8%, 96.5% complete health, education, completion of 99.2%. This form only three stock funds than 200 billion yuan.
Fund budget has earmarked nature. In the actual implementation, there are budget funds transfer payment is not timely, idle funds and carry-over balances and other phenomena. Audit Commission released "Report on the 2012 central budget implementation and other financial revenue and expenditure audit" shows that fund expenditure budget to take fixed income support preparation mode, no part of the budget in early identification of the projects vary from actual expenditures.
State capital budget is an important part of the government budget, the balance of payments reflects the national identity of the owners to carry out stock adjustment and incremental allocation of state-owned capital occurs. Profit, state-owned assets transfer of income included in the state capital budget from the state invested enterprises share of income from the liquidation of state-funded enterprises to obtain income and other state-owned capital.
The actual income for the state-owned economy and industrial structure adjustment, the central enterprises to resume production after the disaster reconstruction, when the central aspects of enterprise major technological innovation, energy conservation, equity investments and overseas mineral resources, reform and restructuring of subsidies and other expenditures, also belong to the stock of financial capital, a government can mobilize funds. From the past two years the situation, these funds also appeared idle situation.
"New Money": reasons for the formation of financial capital stock of what?
Bai Jingming: Financial stock funds scale of the reason is very complex, can be divided into institutional and non-institutional two categories. Wherein Institutional there are four main reasons:
First, the lack of scientific budgeting. When budgeting, budget units at all levels sought to maximize the budget. Project budget is money to work, but what kinds of things can do, and the first to do, and after do, do what extent has a strong flexibility. Thus, the budget will put more units of the project budget preparation and reporting as to achieve maximum budget breakthrough. This makes budget become part of the project argue, landing rootless projects and eventually hand the money carried over year after year.
Second, the stock of capital deemed financial sector. For a long time after that the budget units at all levels always budget approved budget funds should be permanently owned sector, and they may be in no hurry to execute the budget thinking, stock funds snowball getting bigger.
Third, the implementation of the budget approval time is too long. Budget performance approval process has to fulfill the original time limit. But the reality is running non-compliance deadlines often exist, thereby lengthening budget execution time of major projects caused by carry-over funds.
Fourth, the budget execution of the program over time to fulfill. Execution of the budget according to the procedure of an act of compliance, but some do not follow the time limits for budget units to perform procedures that spending has slowed, and eventually carry-forward.
Creating financial growth stock funds of non-institutional factors are mainly two things:
First, changes in natural factors. The amount of expenditure affected by many natural factors controlling the number, such as population, climate, technology. Budgetary factors often incremental nature oriented to prepare, but the actual situation may be spending cuts.
Second, the market factors. The amount of expenditure depends on many factors, changes in the market, such as price, demand preferences, market range. In recent years, the market price decline, but steady rise in the market price budgeting basis, which directly cause actual expenditure below the expenditure budget.
Services steady growth
"New Money": make an inventory of the stock of financial capital, mainly to macroeconomic regulation and combine well how to serve this goal?
Bai Jingming: make an inventory of good use of the funds in full compliance with the principles of the government two steady growth policy choices, including insist efficiency and risk control, further analysis of the current fiscal revitalize steady growth stock funds have two specific necessity.
First, control financial risks. For seven consecutive years it has adopted an active fiscal policy, tax incremental simultaneously, and increasing intensity. In addition, fiscal 2014 has been reduced to single-digit revenue growth from economic growth trend, revenue-digit growth will become the norm. At the same time, expenditure growth in demand for more and more strong. Two phase equilibrium, the result is a gradual increase in the deficit. In this regard, we must attach great importance to avoid runaway debt onto the road.
In fact, the key to the rapid expansion of government debt will inevitably crowd out private investment, occupy high proportion of the money stock, so high that an investment in our country demand likely to cause inflation, currency stability is actually INTERNATIONAL macro-control a top priority.
Therefore, the use of financial means spending steady growth, we should choose either to expand the current expenditure, without measures to increase debt. Revitalize the financial stock funds was in line with this requirement.
Second, coordination of monetary policy. The current implementation of prudent monetary policy into a conflict-prone period, on the one hand generalized liquidity (M2) stock has more than 110 trillion yuan, accounting for up to 180% of GDP (far more than the international level), money supply expansion space has been very small; on the other hand, the rapid expansion of bank balance-sheet business, social financing needs are not met, in particular SME financing no substantial relief, a structural liquidity "shortage." This allows to control the price of the primary policy objective monetary policy can only take stock of money and revitalize the way to steady growth. Make an inventory of the stock of money is to accelerate the implementation of the path of the flow of funds rate, let's settle down funds to re-enter the financial markets and the real economy configuration. To revitalize the stock of financial capital and revitalize the stock of money to integrate together, timely financial resources injected into the budget prepared in accordance with the requirements of consumption and investment, can effectively promote monetary inflows the real economy.
"New Money": how to revitalize the financial and stock funds steady growth combined? It is also imperative.
Bai Jingming: revitalize the financial capital stock of steady growth achieved in two ways: First, timely and efficient use of budget units at all levels of surplus carry-over funds, these funds injected into the economy system, into products and services; the second is the financial sector surplus funds carried forward to serving economic recovery system to run. Both methods can produce the desired effect, will depend critically on the effective expenditure policy and institutional change to unify.
Because the system is the basic guarantee conditions for implementation of the policy, and the policy direction of change in turn guide the system. Excessive precipitation early emergence of financial resources, the fundamental reason is that institutional change not kept pace, so that the use of funds from the intended policy direction.
On the expenditure policies and revitalize the steady growth of financial resources is the key to selecting the right focus. Further these funds focus on investment to give full play to the role of steady growth in the field. For example, when the current balance carry-over funds accumulated in the past to re-arrange the use of budget expenditure out, we must fully consider whether to play into what steady growth function. From a practical feature of economic development, the increase in public investment is the most effective entry point for steady financial growth. On the one hand because of the multiplier effect of public investment is strong, on the other hand there is a greater public investment in hydraulic gap, such as irrigation and water conservancy facilities, the protection of housing construction, environmental protection and other aspects of the project is in "and rice on" state.
Financial stock funds is a new force should therefore focus on investment in these areas meet their immediate needs.
Accelerate the reform of budget management
"New Money": To make an inventory of the stock of financial capital, have fundamentally to find a cause, improve budget management is the key.
Bai Jingming: To make an inventory of the stock of financial funds steady growth must accelerate the reform of budget management. Specifically, the reform is to make the project feasible by optimizing budgeting, strengthening budget implementation in accordance with regulations in place to make money. Around revitalize the budget necessary to promote the steady growth of budget management reforms in the following areas.
First, focus on full-caliber budget management. From "Financial stock funds," the sources and uses of management speak, supposedly from "full caliber budget management" perspective to understand, "make an inventory." The so-called "full-caliber budget management" means from the budget system perspective to understand policy implications. China's current budget has four categories: public budget, the government fund budget, the state-owned capital management budget, Social Insurance Fund budget. When the use of financial stock funds, to focus the balance between the different categories of the budget, to strengthen coordination between the various types of budget funds in accordance with the "Budget Law", the part of government funds should be transferred to the general funds of public budgets. At the same time, to break the four budget management level uneven pattern. Specifically, it is to performance management, project library construction and other systems introduced into government funds and state-owned capital management budget management to go.
Second, the preparation of interim budget. Science budgeting accurately balanced budget to implement effective prerequisite and guarantee. Revitalize the stock of financial capital, first of all to improve the budgeting framework. Preparation of medium-term budget should do the following: First, the financial sector must strengthen collaboration with government departments, regional and other aspects of development planning in order to make budget resources and planning indicators reasonable convergence. Second, improve the library construction project budget, to do the work in advance, to solve the "money and other items," the problem, so that "money and other items" to strengthen the pre-feasibility study of the project budget. The third is to strengthen the development of macroeconomic analysis and forecasting model of society, attention to cooperation with experts and professional research institutions, strengthen the scientific prediction of revenues, earnings and accurate preparation of the budget, improve the scientific accuracy and budget decisions. Fourth, to further improve and refine the department budget, in particular to the use of standardized quantitative approved and zero-based budgeting method, to develop a reasonable spending budget, lay the foundation for the implementation of the budget.
Third, the specification of budget implementation. Budget implementation is an important part of the budget and the implementation of key aspects of financial management, more and more attention of the community. Revitalize the stock of financial resources should be strictly budget implementation Therefore, we must raise the consciousness of the strict implementation of the budget spending units and departments, and make sure the implementation of the budget law, strengthen communication and coordination of budget implementation, and actively resolve, reduce and eliminate barriers to the implementation of the budget, strengthen supervision and management of implementation of the budget, to build long-term mechanism to explore the specification of budget implementation and contribute to budget targets. "Budget Law" has been clearly defined legal responsibility. In this regard, departments should attach great importance to establish a mechanism to manage the entire process of budget implementation, the timely implementation of the budget in accordance with regulations included in the department of internal control content.
Fourth, establish and improve the implementation of the budget dynamic monitoring system. To strengthen budget preparation and implementation of effective convergence, implementation of dynamic monitoring mechanism established budget. Current key problem to be solved is to establish full monitoring of transfer payment funds use dynamic monitoring information platform. To this end, the central government should earnestly implement the national budget for the implementation of dynamic monitoring system construction plan, in order to achieve the central longitudinal transfer payment funds in the end of the monitoring as soon as possible.
Fifth, the effective implementation of the whole process of budget performance management. One of the important contents of deepening the reform of the budget management system is to follow the "Budget Law" provisions in the budget to emphasize performance, the performance of budget management philosophy throughout the whole process, through performance budgeting system supply, and "blending in prison pipe." Budget Performance management is an important part of government performance management, emphasis on results-oriented expenditure, the budget is a key institutional arrangements throughout the regulation.
Sixth, the integration amalgamate special transfer payments. Should not be phased out to meet the requirements of economic and social development of special transfer payments, part of the local powers belonging to a higher level of information and complex special transfer payments transferred to local management on the part of the use of similar direction, similar to the policy objectives of special transfer payments It is integrated to further improve capital efficiency. Higher levels of government transfer payments to lower levels, should be informed in advance, timely disbursement. The total size of transfer payments, specific rules, funding schedule, and the need to develop detailed plans in advance. At the same time, strengthen the supervision of special funds, special funds management responsibilities to effectively change is unknown, cooperation is not enough, inadequate measures, lax oversight issues.