China's current budget management system is what budget management system

China's current budget management system is a tax-based, hierarchical budget management system.

The tax system budget management system refers to the reasonable division of the scope of government affairs at all levels on the basis of the division of budget revenue at all levels of government, mainly according to the tax type, the budget of all levels of government is relatively independent, with a clear balance of responsibility, the difference in financial resources between the various levels of government through the central government to the local government or the upper level of local government to the next level of local government through the transfer of the system to regulate.

China has implemented a tax-based budget management system since January 1, 1994, with the following main elements:

(1) The division of fiscal expenditure between the central and local governments.

(2) The division of central and local fiscal revenues.

(3) The system of intergovernmental fiscal transfers.

The system of hierarchical and tax-divided budget management refers to the budget management system that divides the fiscal revenues of all levels of government by tax types on the basis of the division of the authority of each level of government in the context of the implementation of the multi-polar budget management system.

The hierarchical tax budget system is a kind of budget management system generally adopted by the countries practicing market economy. China's hierarchical lump-sum system adjusted in 1995 has already absorbed the factor of tax division in the hierarchical tax system, and the reform of the "tax division system" implemented in 1994, which was based on China's actual situation, has borrowed the hierarchical budget system of the market economy countries, and initially formed a hierarchical budget system, which is the first to be implemented in China.

The hierarchical budget system can be summarized as follows:

1. One level of power, one level of budgetary body, and the budgets of all levels are relatively independent and self-balancing.

The hierarchical budgetary system is also known as a multi-level budgetary system, the so-called fiscal federalism, where the Congress only approves the central budget and the local budgets are approved by the local legislatures. Local budgets at all levels are made up of local tax revenues, local service revenues and central government subsidies, and when the above revenues do not meet the needs of the local government, it is allowed to issue local bonds or borrow from the banks to achieve self-balance.

2. The scope of government responsibilities (authority) is divided on the premise of clarifying the boundaries of government functions in a market economy, and the scope of budgetary responsibilities (financial authority) at all levels is divided on this basis.

The central budget should bear the costs of national defense, administrative costs, social welfare and social security, as well as economic development-oriented costs, localities should bear the costs of culture, education, health care and municipal construction-oriented costs, should also have a clear division of investment responsibilities of the various levels of government, should not give rise to the misplaced, overstepping the position of the lack of phenomena such as the emergence of the complex or by the central and local areas separately, or by local areas to bear central Give subsidies or central and local joint investment.

3, the division of income to implement the tax system.

In the proportion of income division of the central budget in a dominant position, to ensure that the central government's right to regulate and control the strength of the division of taxes, some of the tax division, budgets at all levels of the level of the main tax, the bulk of the income of the tax to the central government, such as: income tax, excise duties, customs duties, etc., the income of the elasticity of the sales tax and property tax to the local government, such as: business tax, etc., and the distribution of the same type of tax according to the different rates, and through the central government's base tax rate. In some cases, the same tax is allocated at different tax rates and local tax rates are limited by the central government's base tax rate; in some cases, a sharing or ****sharing system is practiced. That is, taxes belonging to the central government are distributed to the local government in a certain proportion, such as 75% of the value-added tax (VAT) goes to the central government and 25% to the local government, or taxes belonging to the local government are distributed to the central government in a certain proportion, and the two sides enjoy the benefits of ****. Separate state tax bureaus and local tax bureaus are established, combining tax sharing, management and collection.

4, the budgetary adjustment system, known as the transfer payment system.

Transfer system is a country between the various levels of government in the established duties, expenditure responsibilities and tax division based on the mutual transfer of financial resources, there are two forms of vertical and horizontal regulation. The typical practice of vertical regulation is the grant system. The central government collects state taxes from all localities, and at the same time subsidizes each locality, implementing two-way regulation.

Subsidies are categorized as unconditional, conditional and special.

(1) Unconditional grants are grants from the higher government to the lower government with no restrictions? The scope of use and requirements that is, without any conditions attached.

(2) conditional grants is the central government to the lower level of government subsidies with conditions attached to the allocation, the nature and objectives of the subsidy is determined, refers to how to use the funds specifically, shall not be diverted to other uses, and therefore does not produce local governments in *** jurisdiction to save money induced.

(3) The special subsidy is a higher level of government for the lower level of government that receives the subsidy to specify the direction of the use of this financial subsidy.

The national hierarchical budget system is adapted to the country's political and economic system and historical traditions formed over time, as a whole, is relatively stable, only the centralization and decentralization of the relationship and its corresponding adjustment method can be adjusted frequently, that is to say, divided for a long time will be united, united for a long time will be divided the situation should be flexible to adjust.