财政学英文课件
Chapter one
Government and Public Finance in the socialist market economy
Purpose and Requests
This chapter regards operation of market economy as the starting point and explains the relationship among the market, the government and public finance, especially carries on systematic analysis to general financial elements and operation characteristics of the public financial mode. After studying this chapter, students should be able to grasp the basic conception of the public finance and the inner link among public finance, market failures and the function of the government and have an idea about the situation of the hot discussion on public finance in our country.
Section 1 The government and the market
This part consists of the efficiency of resource allocation by market,market failure, public goods and monopoly in market.
?The efficiency of resource allocation by market
Under the complete competitive market, the producers and consumers based on their own interests and rational behaviors, connect and interact with each other, promoting the allocation of social resources to reach the optimum state, namely: Pareto Efficiency.
?Market failure
However, the conditions of the complete competitive market are very difficult to reach in practice. The market mechanism has its one's own defects that can't be overcome. They are:
Externalities-- A certain individual unit does not bear the corresponding cost expenses or share the advantages from the behaviors, which exert favorable or unfavorable influence on other individual units in economic activities.
Public goods—goods or service having the nature of public consumption and doing benefits to the publics.
Monopoly in market-- When the scale of one trade reaches the relatively high scale, the scale income will increase progressively and the cost will decrease progressively, which causes the monopoly.
Incomplete market-- In realistic market system, some links have obvious incomplete characteristics. For example: Insurance market, capital market, and complementary market.
Incomplete information-- In reality, though the producers and consumers can get the information they needed to a certain extent, they are unable to get the totally enough information. And, the acquisition of lots of information will cost them a lot. For lack of the information, the efficiency of resources allocation will be influenced.
Inequality in the income distribution—as the result of social political
and economical limitation, as well as the differences among individuals,
the income is not completely determined by the price of the recourses, which can cause the inequality in the income distribution. The unbalance of the macro economy-- Disequilibria between aggregate
supply and aggregate demand.
?The economic role of the government—because of the market
failure, government economic function in remedying the market defect has been paid great attention
1.the system of economical operation
2.the economic role of the government (1) Incorporating and influencing the operation course of modern economy inherently (2) Offering state power to intervene economical operation (3) Implementing macro adjustments and controls to economical operation.
3.government failure (1) internality (2) Monopoly (3) Political nature
?Public goods and way of offering public goods
1.Characteristic of the public goods
The public goods refers to the products or services that used for satisfying public needs. Two essential features: 1. It is not exclusive.It is not competitive.
2. Classification of the public goods: Mixed public goods and Pure public goods
3.Offering way of the public products
Section 2 Finance and its operational mode in market economy ?The concept : The finance meets the public need of the society for the function of realizing the country, and relies mainly on country with the aid of the government's budget revenue and expenditure, and carry on the form of centralized distribution to some social products. 1.The finance is a category of assigning.
2.The subject of the financial distribution is the country. 3.The object of financial distribution is some social product. 4.The form of financial distribution has contacts with certain economic form.
5.The purpose of financial distribution is to satisfy the needs of national requirement to realize its function.
6.The course of financial distribution relies on government's budget.
?Public finance
The public finance is a kind of financial mode or type that has contacts with market economy, meaning that the country or the government offer the distribution activities or economic activities of the public service for market. Its essential features are:
1.Public
2.Non-commercial
3.Democracy and ruling by law
?The necessity of our country’s development of public finance
1.Developing public finance can solve confused phenomenon of financial function
2.Developing public finance can promote fair competition of each economic subject
3.Developing public finance can accelerate our country financial democratization and financial legislations.
Section3 China's financial educational circles about the public and
financial controversy
?How to know the concept of the public finance?
1.The question of the source of the word-- public finance 2.The question of relation between public finance and public department
?How to understand the relation between the theory of public finance and the theory of national distribution
?How to know the relation between public quality of finance and the class nature of the finance
Chapter two Financial function
Objectives and requests:
After studying this chapter, students should be able to understand the relationship of market, government and finance further, and hold the finance status and function in national economy correctly in theory. They should also be able to understand the concept of financial function and train of thought of research correctly, and know why finance must have the three functions, namely resource distribution, income distribution and economic stabilization and development under market economy terms; what is the goal of these functions, and what is the mechanism and means; how to understand the three functions in the sense of fair and efficiency
and how to coordinate the fair with the efficiency.
Section 1 The concept and research train of thought of the financial
function
AIM: Summarizing the finance position and function in national economy; Defining the correct ideas of research, and analyzing financial function, scientifically, which is important to build finance theoretical system scientifically and put it in to practice.
?Financial function is owned by the finance as economic category objectively and intrinsically, so long as the finance exists, these functions would not disappear.
?The functions regard relation between government and market as the basic principle
The functions of the finance under socialist market economy can be summarized in to three terms: resource allocation, income distribution and economic stabilization and development.
Section 2 The function of recourse allocation
?The definition of this function
Resource distribution means that distributing the limited resources among various kinds of possible uses in order to meet the demands of different people, and forming certain assets structure, industrial structure, technological structure, consumption structure and area structure.
?The efficiency criterion of resource distribution and mechanism of realizing
The criterion—―pareoto efficiency‖
The mechanism---- two-Yuan mechanism of market and government functioning together
?The way of realizing
1.Confirming the proportion of fiscal revenues to gross domestic product rationally, and this proportion is the proportion of financial resources to the whole social resource, in order to realizing the rational disposition of resource between folk department and government's public department. 2. Optimizing the structure of the fiscal expenditure
3. By way of using financial investment, tax revenue and other means to regulate and guide folk rational disposition of resource rationally. 4.Promoting the efficiency of the tool of resource distribution
Section 3 The function of income distribution
?Definition of this function
It means the distribution of national income that national economy creates over a period among the individuals of government, enterprise and resident according to certain way. National income distribution forms the income distribution pattern and asset distribution pattern.
?The justice criterion and mechanism of realizing of the function Economy fair -- the contribution of the resource determines income distribution. No contribution, there is not qualification to participate in assigning, more resources be offered, there are more incomes; less resources be offered, there are less incomes.
Society fair– the society should maintains the income gap in the rational range which the resident of every stratum of society can accept at present.
?The way of realizing
1.Defining the range between market distribution and finance distribution. 2. Improving the transfer payments system.
3. Strengthen tax regulation.
4. Improving the worker's wage system in the administrational and
institutional departments.
Section 4 The function of economic stabilization and development ?Definition of this function
The economic stability is a kind of ideal state of macro economical operation, including fully employment; price stability and international balance between revenue and expenditure.
Abundant employments mean the employments rate of employed population can reach each very high proportion.
The stability of the price refers to the basic stability of the total level of prices.
The international balance between revenue and expenditure means that revenue and expenditure of regular project and capital project of one country can keep balance.
The meaning of development is wider than the meaning of increasing.
?The condition and the mechanism of realization
To achieve the goal of economic stability and developing, we should solve the problems of three aspects at least. First，it is an overall balance
question. Second, the problem of structure coordination and advancement. Third, the problem of optimizing the environment
?The way of realizing
1. Improving the tax system and social security system. 2. Adopting the active financial policy to promote the balance between social total supply and demand.
3. Strengthening the coordination and cooperation among financial policy, the monetary policy, and the policy of exchange rate. 4. Utilizing the means of the policy, such as investing, replenishing and tax revenue to promote the coordination and advancement of economic structure, especially industrial structure.
5. Guaranteeing the unproductive public needs conscientiously and creating good external environmental condition for economic stability and development.
Section 5 Justice and efficiency
?Meaning and relation of justice and efficiency
The justice is related with the concept of income. It include economy fair and society fair.
Economy fair is that the factors input corresponds to the factors output. Society fair means maintaining the income gap in the range that every stratum of the society can accept of at present.
Efficiency belongs to the category of productivity. Efficiency includes two kinds of meaning: resources producing efficiency and disposing efficiency.
?The way to coordinate the relation between justice and efficiency 1. Having unity with efficiency and fair, then the two must be given consideration together.
2. Coordinating two kinds of mechanisms of market and government to give consideration to both efficiency and justice.
3. Dealing with the relation between income gap and efficiency correctly.
Chapter three Structure and scale of public expenditure
Objectives and requests:
After studying this chapter, students should be able to:
--Understand the meanings and contents of all kinds of fiscal expenditures --Pay attention to the variation tendency of the structure of expenditures and influential factors
--Analyze the meaning of the scale of expenditures and growth trend correctly,
--Pay attention to the difference between the change of relative scale and
that of absolute scale
The expenditure is a kind of economic behavior of the national governments at all levels. It is the country that carries on the activity of reallocating the financial resources. It mainly solves how to arrange the value of the social wealth that belongs to the country.
The expenditure is a kind of expenditure activity of currency funds that relying mainly on government, and regarding duties and responsibilities of the government as the basis. Expenditure analyses consist of three respects, namely structure analyses, total amount analyses, and benefit analyses.
Section 1 The classifications of the expenditure
This section represents the classification of expenditure from three angles and analyses the composition of the expenditure briefly, then introduce categorizing method of International Monetary Fund to you, and compare that with China's current classification
?Classification by spending purposes
The expenditure of our country has 13 categories when classify by use of the expenditure, namely basic constructions expenditure, state-owned enterprise circulating fund, taping the latent power of the enterprise, three items expenses related to science and technology, geological prospecting fee, the fee of industry and traffic departments, expenditure of supporting rural productions and so on.
?Classification by functions
Economic construction fee, social culture and education fee, national
defense expenditure, expenditure on administration and other expenditure
?Classification by economic features
The purchases of the government—The expenditure used directly by the
government to buy the raw materials and land, workforce, capital from the
individual and enterprise, and another name called the expenditure of consuming nature.
Transfer payments-- The expenditure refers to the expenditure that the government reallocates the purchasing power between citizens for the shifting nature. This kind of expenditure of the government is shown as the free and one-sided transfer of funds. These expenditures consists of social security expenditure, financial subsidy expenditure, present expenditure and debt interest expense mainly.
?Common classification methods used by other countries
According to existing categorizing method, there are two big kinds on the whole: one kind is the theory classification used for economic analyses, the other is statistical classification used for making national budget.
Section 2 The structure of public expenditure
The structure of the public expenditure means proportion of all kinds of expenditures to total expenditure
?The functions of the government and the structure of the public expenditure
To some degree, the expenditure is the capital source and direct cost of the government activity. So, the range of the government function and emphasis point has determined the scale and structure of the expenditure. 1. Two kinds of views of the government function
The market is leading—this view focuses on the role of freedom operation of market in economic development
The government is leading—this view emphasizes that the government
should intervene economy, and believes the goal of fully employment and economic growth can be achieved through the financial policy. 2. The changes of expenditure structure
There are close corresponding relations in view of the structure of the
expenditure and government function, so we simplify the government function as two big kinds, namely the economic management function and social management function, Correspondingly, the expenditure can be divided into economic management expenditure and the social management expenditure. Since the foundation of China in 1949, the proportion of the economic construction expenditure drops a lot. On the contrary, the social management expenditure improves by a large margin.
?The stage of economic development and expenditure structure Fundamentally, the long-term development of the structure of the expenditure depends on stage of economic development mainly. 1. The theory of developing stage of the expenditure structure Musgrave divided the whole expenditure into military expenditure and civil expenditure; the civil expenditure can be divided into the expenditure of common accumulation, public consumption expenditure and transfer payments according to its economic nature. In the meanwhile, He divided economic development into three stages. Namely primary stage, intermediate stage and ripe stage. And he thinks that at different developing stages; the growth situations of these three kinds of expenditure are different.
Rostow thinked, as soon as economic development enters ripe stage, the main goal of the public expenditure is to offer social infrastructure in education, hygiene and welfare, etc.
2. The international comparison of the structure of the expenditure
Section 3 The scope of public expenditure
In order to weigh the financial activity scale, we can use two indexes: The proportion of fiscal revenues to GDP and the proportion of expenditure to GDP. Commonly, the proportion of expenditure to GDP can reflect the scale of the financial activity truly.
?The index for weighing the scale of expenditure
There are two indexes, one is total expenditure, which is the absolute index, and another is the expenditure rate, namely the proportion of expenditure to GDP, which is a relative index. Commonly speaking, the first index has more practical sense than the second one.
?The growth trend of the scale of public expenditures
1. The scale of economic expenditure in developed country 2. The scale of economic expenditure in developing country
?The factors in the determining public expenditure scope 1.The theory of the expansion of government activities
2.The theory of increases step by step
?The changes of public expenditures in China
Since 1979, the scope of public expenditures in China has expanded and the rate of expansion has gone up correspondingly. However, the proportion of public expenditures to GDP has dropped.
1.The rate of increase of the public expenditure
2. The proportion of the public expenditure
3. The potential pressure as the result of the increasing expenditure
Chapter four The benefit analysis of the public expenditure
Purpose and Requests
This chapter represents three methods of weighing benefit of the public expenditure called benefit, minimum expenses choice, public pricing as well as government procurement system. After studying this chapter, you should understand the inherent request that the expenditure of public finance puts forward for benefit, and on the basis of this, you should be able to give correct understanding to the method and way of appraising expenditure benefit. The so-called benefit, refer to the contrasting relation between" income" and" fee" in practical activity.
Section1 The analytic approach of ―cost – benefit‖
The analytic approach of" cost - benefit" --- this approach put forward several schemes against the project goal that the government determines, and arrange all potential costs and benefits of different schemes, then change them into the monetary unit, and finally determine which project or scheme is most feasible through comparative analysis.
There are six steps: Defining the goal that government projects should be realized; Enumerating the costs and benefits; Calculating the costs and benefits; Calculating and discounting the costs and benefits; choosing the decision standard; Selecting the project.
?Defining the goal of government project
1.Making choice among numerous goals.
2.Considering the time span of realizing goals
3.There may be conflicts between the goals
?Enumerating the cost and benefit
When enumerating the costs and benefits of the government projects, the costs include not only the direct costs but also the indirect costs; Benefits includes not only the direct benefits but also the indirect benefits. The direct costs refer to the costs of direct inputs that the government project uses. The indirect costs refer to outside costs led by the project.
The direct benefits refer to the increases of the outputs and improvement of the benefits of the direct users of these project products. The indirect benefits refer to overflowing or external benefits outside users.
?Calculating the costs and benefits
?Looking for the ―shade—price‖
―Shade—price‖—(―shade—price‖ of a kind of goods is equal to the market price in the perfect market)
?Creating ―shade—price‖
?Calculating and discounting costs and benefits
?Choosing the decision standard
1.The standard of net present value (NPV)
2.The standard of the rate of income—cost
3.The standard of inside earning ratio (IRR)
?Selecting the project
Section 2 ―minimum expenses choice‖ and ―public pricing‖
?―minimum expenses choice‖
The main characteristic of this method is that it is unnecessary to measure the social benefits of the financial expenditure in monetary unit, but only calculate the tangible costs of each project, and regard the lowest cost as the standard
Steps: First of all, proposing many kinds of schemes according to the goal that the government determines. Secondly, calculating and adding up tangible expenses of each scheme in monetary unit. At last, listing the order according to the level of the expenses, for policymaker to choose
?Public pricing
Public pricing includes two respects:
First, pure public pricing---the government makes the price of the trade of natural monopoly directly
Second, in charge of making prices--- In some competitive trade (agriculture, financial circles, education, health care, etc.), out of safeguarding the steady purpose of micro market, government need to carry on the price control to some products or the service.
Section 3 The government procurement system
?The meaning of government procurement
1. The characteristic of government procurement
Government procurement has another name called purchasing publicly, meaning that the government buys the goods and service in order to fulfill its function. (1) The public quality of the capital source. (2) The non-commercial quality of the usage of the funds. (3) The policy quality of the purchasing. (4) The standardizing nature of the system 2. The social and economic meaning of government procurement: (1) Saving the financial fund, and raising the service efficiency of the fund.(2) Regulating economical operation effectively. (3) Encouraging the technological progress, and promoting the long-term economic growth. (4) Improving the reform of the management system of budget of our country and the financial management.
?The basic contents of government procurement
―Government Procurement‖ refers to a series of laws for standardizing the behavior of the government procurement. It is an important part of the public financial system. The basic contents of government procurement include four following respects: Government procurement regulation; Government procurement policy; Government procurement procedure;
Government procurement management.
1. Principle of government procurement
The basic goal of government procurement is that the thing is worth. That is: Buying goods and service the qualities of which conform with the request at the most favorable price. In order to realize this basic goal, four major principles must be followed in government procurement, Namely competition principle, principle of making public, principle of using commercial standard and transparent principle.
2.The entity of government procurement: government at all levels and other entities such as public cooperation and the institution.
3. The scope of government procurement
According to goal of government procurement---- the goods, service and project.
4. The mode of government procurement
Centralized purchasing mode, disperse purchasing mode, the mode of mixture of both centralized purchasing and disperse purchasing 5. The way of government procurement
Competitive bidding way, inviting way of calling for bid, way of consulting price, way of inquiring the price purchasing, the way of purchasing directly.
? The type of contract of government procurement
1. The contract of regular expenses
2. The contract of the cost added by the regular expenses 3. The contract of the cost added by the expenses contract of the proportion
?The pursuing of China's government procurement
1.The situation of pilot project
2. Some problems
3. Several measures to perfect government procurement
Chapter five The purchases of the government
Purpose and Request
This chapter explains public consumption and the government investment. After studying this chapter, you should have an idea of expenditures for state administration and national defenses and expenditures for culture, science and health.
Section 1 The public consumption
?The nature of the public consumption
The public consumption expenditure investment expenditure both belong to the government purchase expenditure, but there are obvious differences between the two, the greatest difference lies in that the former is the nonproductive consumption expenditure
? Expenditures for state administration
1. The nature and contents of expenditures of state administration State administration expenditure is the expenditure coming from financial expenditure to satisfy the basic needs of powerful state organizations at all levels, administration offices, the judicial procurator organizations and foreign affairs organizations.
Contents of expenditures of state administration are determined by the structure and function of the national administration office. The administration expenditure of our country includes administration expenditure, public security expenditure, expenditure of national security, judicial procurator work expenditure and diplomatic expenditure. 2. The analysis of the changes of expenditures of state administration Along with the development of social economy, the economic activities are becoming more complicated; so there is its rationality in the constant increase of the administration expenditure. However, because the administration expenditure is a kind of pure consumption expenditure, it
is" dawdling emptily" of the wealth of society. Too fast increase and too large proportions must be controlled.
3. The factors determining expenditures of the state administration The direct factors include the financial revenue and expenditure scale, government function and corresponding organization structuring and the expenditures’ own efficiency, so controlling the administration expenditure must be set about from many aspects.
?Expenditures for national defenses
1. The nature and contents of defense spending
The defenses’ spending is the expenses, which are used in national defense construction and PLA, Including national defenses expenditure, people's militia building fee, scientific research of national defenses fee and antiaircraft funds, etc. Seeing from the relation between it and the national production, defenses’ spending belongs to unproductive expenditure; while according to its final use, it is the expenditure of the social consumption nature.
2. The analysis of the changes of defense spending
Because of the defensive nature of national defense strategies, the national defense policies make the proportion of defense spending relatively low. From historical respective, since the reform and opening up to the outside world, the proportion of defense spending of our country has dropped constantly
3.The factors determining the defense spending
Political factor, economic factor, soldier's system, the service efficiency of the funds and region factor
?Expenditures for education, science, culture and health
1. The nature and meaning of expenditures for education, science, culture and health
Expenditures for education、science、culture and health refers to the funds
expenditure of the institution such as cultural institution, educational institution, scientific institution, hygienic institution, seeing from the functions, this kind of expenditures belongs to the expenditure of social consumption nature; While seeing from departments that use the funds it belongs to unproductive expenditure.
2. The analysis of the changes of expenditures for education, science, culture and health
3. The capital source of expenditures for education, science, culture and health
Government and the publics provide funds together.
Section 2 The government investment
?Analysis of government investment in general
1. The investment and the economic growth
The investment is the motive force of economic growth or economic development and it is a main factor determining the economic growth. 2. The characteristics in governmental investment
The social investment can be divided into governmental investment and non-governmental investment
?Government investment in infrastructures and financing system 1. The importance of government investment
The basic industry is a basic department, which supports one country's economical operation; it is determining the development levels of the direct production activities, such as industry, agriculture, commerce, etc. 2. The development of infrastructures and financing system Both the infrastructure department and basic industrial departments have characteristics such as heavy initial investment, long construction period, long payback period of investment, and these characteristics have determined that the basic industry can't meet the needs of national economic development by their own accumulation.
Financial investment and financing is a kind of policy investment and financing. It is different from allocating funds gratuitously, and different from commercial investment and financing too. It is the important policy tool of developing country's basic department development.
?The fiscal inputs in agriculture
1. The importance of the fiscal inputs in agriculture
Agriculture is the foundation of the national economy. The quality of the agriculture can restrict the development of national economy to a great extent
2.The capital source and the focal points of the fiscal inputs in agriculture The capital source should be the agricultural producer’s own accumulation mainly. The focal points are in the investment with the characteristics of" external economy‖, wide concern, or enormous scale.
Chapter six Transfer Payments
Purpose and Request
This chapter explains the main contents of the expenditures on social security, subsidization and tax expenditure. After studying this chapter, you should have an idea of: The nature and characteristics of the expenditures on social security and subsidization, the source of the funds of social security, the social security in China, main contents and the importance of subsidization and the conception, nature and characteristics of tax expenditure.
Section 1 The expenditures on social security
The transfer payments consists of subsidization, present expenditure and debt interest expense
?the nature and characteristics of social security expenditures 1. The nature of social security expenditures
The social security means that the country and society ensures of basic right—living of the social members through the reallocate national income according to certain law and regulation. The expenditure of social security is an important part of social public needs.
2.The characteristic of social security expenditures. (the extensive coverage, the mandatory participation, the legislation nature on the system ,the binding character of the benefited degree)
?The source of the fund of social security and way of raising 1. The source of the fund of social security
Rising for social security funds should both satisfy the social actual needs and fully consider the development level of national economy as well as the ability of financial burden of country, enterprise and individual. In most countries in the world, social security funds from government, enterprise and individual together.
2.The way of rising
?China’ social security system
1.The main contents
Social insurance, social welfare, social assistance, special care. 2. Development of China’ social security system
Under the traditional system, the social security system of our country is divided into two great kinds: one is based on the unit of collective ownership; the other is based on the unit of state ownership. In the middle period of the eighties, with the deepening of economic system reform of city of our country, the reform of social security system which took endowment insurance, unemployment insurance, the medical insurance and urbanite's minimum living guarantee as main content is deepened constantly.
3. Main problems and basic ideas on deepening China’ social security system
Main problems—First, the coverage rate is not wide enough. Second, the way of the fund running is single, lack the normal stimulation mechanism. Third, as for the social assistance, the standard is low and not unified. Fourth, lack of completed system of social security system. Basic ideas—(1) The security level should be according to our country's present developing stage and productivity level. (2) Setting up the law of social security, and developing the social security system. (3) Building the budget system for social security system.
Section 2 Subsidization
?The nature and characteristic of the subsidization
1. The nature-- the expenditure subsidized by the government to the item appointed by the special fund of financial arrangement according to the economic situation of regular period in order to achieve specific goals 2. The characteristic –(1) strong political nature (2) Certain flexibility (3) obvious ageing
?The necessity and function of subsidization
1. The necessity --all economic systems and operating mechanisms have intrinsic defects. In order to overcome these defects to achieve the social goal all-sidled, it is necessary for the government to use the system of subsidization as an instrument of economic adjustment to correct the unfavorable consequence resulting from market mechanism, such as the market failures; The financial subsidy is one of the regulation measure that can be utilized.
2. The function—(1) correcting the unreasonable price structure, and improving the law of value to function. (2) Correcting the market defects in order to realize the goal of social welfare of the country.
?Main contents and form of subsidization
1. Main content-- Classified according to the policy purpose of the
financial subsidy, subsidization can be assigned to: price subsidy, subsidies for losses of the enterprise, export replenishing, finance paying interest, and tax expenditure.
2. Form--subsidization for material object and subsidization for the currency
?Reform of China’s subsidization system
1.The predicament of China’s subsidization (1) the subsidization becomes the main burden of the state revenue and expenditure since the sum is large (2) the subsidization has hindered the effective function of socialist market economy since there are too many categories of it. (3) The imperfect system does not help enterprises to improve management and administration and the operating mechanism. (4) That the way of subsidization is used improper has led to the fact that benefit of expenditure of financial subsidy is low, and the benefit is unfair. 2.Reform of China’s subsidization system (1) Defining the project of
financial subsidy rationally, and controlling the total scale of the financial subsidy (2) Standardizing the system of financial subsidy, and canceling the subsidies for operational losses (3) Adjusting the financial subsidy policy in good time (4) Reinforcing the management of the system.
Section 3 Tax expenditure
?The concept and the nature
Tax expenditure is the favorable measures in tax revenue made by the government to irritate investment and consumption or subsidize special difficulties in order to guide and support some economic activities. The essence of the expenditure is the income lose or income that has been given up of government for offering special activities or taxpayers special benefits. Seen from its function of the expenditure, it can be divided in two types.
?The characteristics of the tax expenditure
The differences and indifferences between tax expenditure and direct expenditure
The difference—the nature, the result, the purpose, the impact on fiscal balance
The indifferent characteristic of the tax expenditure – Ageing、extensive
quality, indirect quality, elasticity
?The means of tax expenditure
1. Tax exemption-- exempting taxpayers’ tax burden through refusing to levy taxes about some income projects、income sources to the taxpayer or
some activities.
2.Tax deduction-- Permit the enterprise to deduct the tax of certain income in certain rate or all a in order to lighten its tax burden with certain degree. 3.Tax credit
4.Favorable tax rate
5.Balancing the profit and loss
6.The refund of tax
7.Postponing paying taxes
8.Accelerating depreciation
?The budgetary control of tax expenditure
The purpose of proposing the concept of tax expenditure lies in listing various kinds of expenditure of tax type in national budget in order to strengthen the management and control favorable to the tax revenue. The budgetary control of tax can be divided in three types: (1) Non- institutionalized interim supervision and controlling (2) Setting up unified tax expenditure account (3) combination of provisional control and institutionalized control.
Chapter seven Scale and structure of fiscal revenue
Purpose and Request
This chapter has analyzed structure and scale of the fiscal revenue in terms of macroscopic, mainly involving various kinds of classification of the fiscal revenue, the measurement and the increasing trends of the scale of the fiscal revenue, and the quality of the fiscal revenue. After reading this chapter, student should know the concepts of the structure, the scale and quality of the fiscal revenue correctly, hold the factors that influence the trends of the fiscal scale systematically, deep to understand the trends of fiscal revenue of China and its particularity, and contact fiscal revenue scale on reason think to fiscal revenue quality.
Section 1 Structure of the fiscal revenue
In order to study various kinds of key elements which influence the fiscal revenue, and make financial policy and system based on this, correct organize and deal with the interests of various fields, it is necessary to analyze the structure of the fiscal revenue. In this chapter, the writer has classified the fiscal revenue according to form of fiscal revenue, industry source, value form, and the ownership source.
?Classify according to the form of the fiscal revenue
At the present stage of our country, the fiscal revenue is formed by several following respects, namely tax revenue, national assets income, bonds and other incomes.
The tax revenue is obtained by political rights. Its scope of application is quite extensive, and does not need to repay. So, it is the basic form of the fiscal revenue.
National assets income includes profit, rent, dividend, assets occupancy etc that the government obtains relying on ownership. This form occupies certain position in the fiscal revenue.
The bonds are the fiscal revenue supported by national credit. The most basic characteristic is the paid utilization.
Other income proportion accounted for relatively little among fiscal revenue, but there are more concrete projects.
?Classify according to the industry source of the fiscal revenue 1. The primary industry and fiscal revenue
2. The secondary industry and fiscal revenue
3. The tertiary industry and fiscal revenue
?Classify according to the value of the fiscal revenue
1. C and fiscal revenue
C refers to the value that compensates the part of production consumed, including the value that the depreciation of the fixed assets and current assets consume. In principle, C cannot be used in new distribution. So, C no longer becomes the source of the fiscal revenue.
2. V and fiscal revenue
V means the part of the products value that pays to individual in the form of labor remuneration.
3. M and fiscal revenue
M refers to the surplus value that deducts the value of products compensation and personal consumption from the products. The degree of M is significant to the fiscal revenue. The public fiscal revenue can only be set up on the basis of M.
?According to the ownership source classification of the fiscal revenue
The state-owned economy is the basic strength of the economy of our country, and becomes the main provider of the national fiscal revenue too. Mix ownership economic and non-public economy develop rapidly, but they increase more slowly relatively to contribute fiscal revenue.
Section 2 Scale of the fiscal revenue
This section has involved the general increasing trends of fiscal revenue, introduced the factors that influence the scale of fiscal revenue and analyzed the quality of the fiscal revenue.
The so-called fiscal revenue scale can be measured by two kinds of methods: the absolute scale and the relative scale. The absolute scale refers to the total amount of different fiscal revenue over a period to come (such as one budget year). It reflects the economic strength of one country or a local government in adjusting economical operation and influencing the social development. The relative scale is the proportion that the fiscal revenue points to GDP or the national income of a regular period. It reflects that the ability of a government to concentrate the financial resources, and the contrast relation between the public financial resources and non- public financial resources.
?The general increasing trend of the fiscal revenue
Under the normal environments, the absolute scale of the fiscal revenue will keep the ascendant trend with enlargement of the financial. Different from the tendency of the absolute scale, the relative scale of the fiscal revenue should demonstrate the steady state on the whole.
?The factors influencing the trends of the fiscal revenue scale Factors influencing the trends of the scale of the fiscal revenue are in many aspects. Generally speaking, the function will be comprehensive in that there are many results of various kinds of influence factors. 1. The restriction of revenue scale by the level of economic development and technology advancement
The level of economic development reflects the abundant degree of a piece of national social products and height of the economic benefits on the whole. It is a fundamental factor that impact on scale of the fiscal revenue, particular on the absolute scale.
During economic development, the level of the technology advancement is an inherent influence. With process of the social industrialization and the information progress, its contribution to the economic growth of science and technology is greater and greater. The impact on fiscal revenue is strengthened day by day too.
2. The restriction of revenue scale by the regulations of income distribution
If the economic growth determines the material base of the national finance, the trends of distribution policy that government participate in inclined to defining the level of the fiscal revenue further. In 1994, the country carried on the new round of economic system reforms including financial system, tax revenue system. An important task of this reform is to change the low proportion of fiscal revenue to GDP. 3. The price
First of all, the change of the price-level influences obviously in circulating tax revenue.
Secondly, the change of the price-level impact on income tax, which makes the situation a bit complicated.
Moreover, the change of the price-level influences the tax revenue that is collected by norm too.
4. Tax system and collecting management
Under set prerequisites, the design of tax system and level of tax collecting management has relatively great influence on the scale of the fiscal revenue.
?The quality of the fiscal revenue
1. The quality of the fiscal revenue
The quality of fiscal revenue refers to the authenticity or validity of the fiscal revenue. Generally speaking, as a form of social products distribution, the fiscal revenue ought to be an entity of quantity (the scale) and quality.
2. The realistic factors influencing the quality of the fiscal revenue The factors influencing the quality of fiscal revenue: Tax revenue plan, Economy counts, and the factors in economic system and economical operation.
3. Must pay attention to the negative consequence of false fiscal revenue on the economy and finance
First of all, it will interfere with the normal economic order. Secondly, it will make the government and financial authorities in the blind optimistic state to financial income level, relax the effective management to the fiscal revenue, does not do benefit to setting up standard of financial operating mechanism.
Chapter eight The principle of the tax revenue
Purpose and Request
This chapter started with the general concepts of tax revenue, analyzed the best scale of tax revenue, fair distribution of tax burden, and has discussed on the issue that how to obtain the set tax revenue through the optimum design of the tax system in the most rational and economy way. Through the studying of this chapter, require grasping the basic theoretical, including the concepts of the tax revenue principle, the theory of optimum taxation etc; Understand and grasp the basic term of the tax revenue and classify mainly, in order to lay a solid foundation for the studying of the tax system.
Section 1 The concept of the tax revenue
The tax revenue is the country in order to realize its function, relying on its political rights, and according to the legal provisions, make a kind of form of the fiscal revenue. The tax revenue is a main form of the national fiscal revenue, offering the material base for realizing the functions and powers of the state.
?The tax revenue offers the material base for realizing the functions and powers of the state, which is a main form of the national fiscal revenue.
The tax revenue is the result that the human society developed into certain historical stage. Under the condition of market economy, the capital source that the government offers public articles can only depend on the tax revenue mainly too. The tax revenue satisfies the need that the government offers public articles; it satisfies the need that the country realizes the function.
?The tax revenue is an important means that the country regulates economic
The tax revenue has been acted the main income role all the time in history. The country levies tax and involves the taxpayer's material benefits directly, thus it not merely change the existing income and wealth of taxpayers, and must influence the production and the consumption behavior of taxpayer shifting. This proves that the tax revenue regulates economic functions objectively.
?Three features
The three features of the tax revenue refer to the mandatory, free native and fixity of the tax revenue.
Tax revenue mandatory means that the nation collects tax relying on political rights through issuing or law. Any units and individuals can't defy, otherwise will be punished by the law.
The free quality of the tax revenue, means that after the country collect tax, the tax is owned by country promptly, no longer return to taxpayers and does not pay any cost or remuneration directly to the taxpayer either. The fixity of the tax revenue means that the country stipulates the standard to collect tax in advance in the form of the law or the regulation before collecting tax.
Three features of tax revenue are an entity. Tax revenue is different from the other form of fiscal revenue by these features. When judging whether a kind of fiscal revenue is tax revenue, see mainly whether it possesses these three features at the same time.
Section 2 The terminology of taxation
It introduced several common tax revenue terms in detail so that for the future understandings and learning. Including: Taxpayer, taxation target, taxation standard, tax base, tax rate, collection point and exempt volume.
?The taxpayer
The taxpayer who also called the subject who pays tax refers to the dutiable unit and individual that pays taxes according to the regulation .It is one of the basics key elements of the tax law.
The taxpayer is different from tax shoulder. Shoulder units and individuals are tax people referred to affording the tax finally. The two are unanimous sometimes, inconsistent sometimes. The key lies in whether the tax revenue is born or is shifted.
?Taxation target
Taxation target is also called tax revenue object and means marked things that taxation regulation fix as target. It is the foundation of levying tax. It is a main sign of distinguishing the categories of taxes.
The taxation target has contacts with tax source, but the two may not necessarily be the same.
?Taxation standard
Taxation standards mean the measurement of taxation target by regulation. In the first level should determine taxation target according to the monetary unit or according to the material object; in the second level determine the standard of concrete material object or currency measure.
?The tax base
The tax base is the item or economic activity on which the tax is levied. The most common use of tax bases may be group into three broad categories: income, consumption and wealth. The choice of the base of the tax, especially the width of legal tax, has remarkable influence on the equity and efficiency of the tax revenue.
Should pay attention to the difference of the base of taxes and tax source.
?The tax rate
The tax rate is core and key link of the tax system, since the degree of the tax rate is the important factor that determines how much the national tax revenue is. It is the important factor of determining the burden of taxpayer's tax revenue too.
The tax rate can be divided into the flat rate, the tax rate of the quota and the progressive tax rate structure.
1. The flat rate
The flat rate (the proportion tax rate) is one for which the average tax rate, expressed as a percentage of the value of the tax base, does not vary with the value of the tax base.
2. The tax rate of the quota
The tax rate of the quota also calls a unit tax. It is a levy of a fixed amount per unit of goods exchange in the market. It stipulates the sure tax rate of measuring the amount of tax to be paid directly according to the base of tax paid in kind of unit.
3. The progressive tax rate structure.
When a progressive tax rate structure is used, the average tax rate increases with the size of the base. The larger the tax base, the larger is the average tax rate applied.
?Collection point and exempt volume.
It is favorable to the taxpayer to stipulate to rise to collection point and exempt volume in the tax law, but emphasis point out that the two are different. Solicit points means the tax minimum demarcation line that the base reaches to levied tax by regulation. Exempt volume means the amount on which the tax can be avoided and that levy tax only by part exceeding.
Section 3 the classification of the tax revenue
?Classify according to the taxation target's nature
The tax revenue can be divided into three large kinds: Taxes on commodities, incomes and assets according to the taxation target's nature. The taxes on commodities regard goods as the taxation target and regard good circulate volume as the base of the tax. It includes various kinds of taxes collected to the goods and labor service. For instance the value-added tax, business tax, consumption tax, tariff, etc. The taxes on incomes regard income as the taxation target; take the element income of the owner (or the user) as base of the tax. The income tax points the Corporate Income Tax and Individual Income Tax mainly. The tax on assets regards the movable property and estate as the taxation target, taking quantity or value of the property as the tax base. For instance: general property tax, legacy tax, gift tax, etc.
Of our country tax systems are classified by this, divided into the taxes on commodities, incomes, assets, the use of natural resource, the behaviors tax.
?Classify according to whether the tax burden could be shifted According to whether the tax burden could be shifted, we can divide the tax revenue into the direct tax and indirect tax.
If all burden of taxation shift, taxpayer and shoulder people of tax are unanimous categories, the tax is the direct tax; all the burden of taxation can be shifted, the taxpayers are inconsistent with shoulders, the tax is the
indirect tax.
?Classify according to the taxation standard
Classify according to the taxation standard, the tax revenue can be divided into specific duty and ad valorem duty. Specific duty regard material object amount as taxation standard confirm tax base, and valorem duty regard currency amount or price as the base of taxes promptly.
?Classify according to the relation between the tax revenue and price In the ad valorem duty, the tax revenue can be divided the tax revenue into the tax outside and in the price according to the relation between the tax revenue and taxing price. If the tax is a part of the taxing price, called the tax in the price; Independent with taxing price tax, call the tax outside the price.
In addition, regard administration authority of the tax revenue as the standard; all categories of taxes can be divided into the central tax, local tax and central locality and share taxes between the central and locality.
Section 4 Analysis on the tax burden
The tax burden: the taxation reduced the direct economic benefits of the taxpayer and makes its financial burden born. It reflects the quantitative relation that assigns of the tax revenue between the country and taxpayer in regular period.
?The measurement of the tax burden
Originally analyze tax at macroscopic and microcosmic perspectives: 1. The macroscopic tax burden means that the overall tax revenue the taxpayer afforded. It can be regarded as the burden of the whole national economy too. Restrictions of the macroscopic tax burden: Economic development level; Economic structure; Economic system; the function range of government
2. The microscopic tax burden refers to the burden that the individual afforded. The microscopic tax burden is measured by the rate of enterprise burden and individual burden. The restrictions the tax burden: the level of macroscopic tax burden, the system of the income distributes, structure of tax system.
?The sureness of the degrees of tax burden
Here main research the competence of macroscopic burden of taxation. The sureness of the degrees of macroscopical tax burden is a realization of financial function in fact. It does not merely concern efficiency of resource distribution, but also the equity and economic stability and development of society at the same time.
One of the representatives of U.S.A. supplied scholar called Arthur Laffer designed" the Laffer curve ". The curve has expounded the relation between tax rate, tax revenue and national output in these contours. It can make us know tax revenue and economic inner link overall; tell us the optimal tax rates to make government realize the function.
Under the condition market economy, the measurement of the optimal tax rate, should consider the following several points: The first, Must guarantee the material consumed in the production process is compensated. Second, Must guarantee that the laborer's essential living expenses are satisfied. The third, Must guarantee the minimum material in order to satisfy the country implements the function.
Section 5 The tax shifting and the tax incidence
?The definitions of the tax shifting and the tax incidence
1. The tax shifting is the transfer of the burden of paying a tax from those who are legally liable for it to others. When a tax is shifted, those liable for its payment succeed in recouping some of their reduction of their income caused by tax payment through changes in price of item they either buy or sell.
2. The tax incidence means the final lodging of tax burden in shifting; it indicates who came to undertake the end of tax burden. It is the distribution of the burden of paying it.
The connection of the two: The state of the tax incidence is decided by the state of the tax shifting. The tax incidence is the result of the tax shifting.
?Methods of tax shifting
It has two methods for tax shifting, namely forward shifting and backward shifting.
1. Forward shifting of a tax is a transfer of its burden from sellers who are liable for its payment to buyers as a result of an increase in the price of taxed goods.
2. Backward shifting of a tax is a transfer of its burden from buyers who are liable for its payment to sellers through a decrease in the market price of the taxed goods.
?The conditions tax shifting
1. The subjective condition: the taxpayer has independent economic benefits to shift.
2. The objective condition: the freedom price mechanism exists.
?The restriction factors
Under the condition of tax shifting, there are a great deal of factors that restrict whether the burden of taxation could shift and the degree of shifting finally.
1. The elasticity the supply of goods or the key element
Other things being equal, the more inelastic of the supply of tax goods or the key element, the greater is the portion of a tax borne by sellers. 2. Taxation range.
Generally speaking, the more broad the taxation range is, the easier for tax shifting; On the contrary, the narrower the taxation range is, the more
difficult for tax shifting.
3. The period of the response
The burden of taxation of the producer (the seller) can't shift in a short time sometimes, but the situation will change in the long-term and lead to the fact that the burden of taxation will be shifted.
4. The attribute of categories of taxes.
Because attribute of the categories of taxes is different, and taxation target elasticity of the goods demand and supply is different, demonstrate different characteristics in the tax shifting.
5. Market structure.
In different market structure, the ability to control the market price is different. So, the situations of tax shifts are different.
Section 6 The principle of the tax revenue
The principle of the tax revenue is the theory criterion that the government should follow in designing and implementation of the tax system, appraising the tax system basic standard good and bad, and examining the administration state of tax too. In the modern tax revenue theory, there are two major basic principles of the tax revenue to get a generally acknowledged one, namely the equity principle and efficiency principle.
?The equity principle of the tax revenue
The equity principle is generally acknowledged for primary principle of the tax revenue. On one hand the equity of the tax revenue will influence the stability of politics and society. It is not merely an economic question; on another hand the equity of the tax revenue directly concern whether the tax system will run well also.
The criterion with the equity of the tax revenue has formed two kinds of main views in theory namely the benefit principle and the ability-to-pay principle.
1. The benefit principle
The benefit principle argues that the means of financing
government-supplied goods and services should be linked to the benefit that citizens receive from government.
This view is extremely easy to be accepted in theory, but has met the question in practice. Certainly, although the benefit principle does not have universal significance among tax system practice, but in some specific categories of taxes it is useful.
2. The ability-to-pay principle
The ability-to-pay principle maintains that taxes should be distributed according to the capacity of taxpayers to pay them. Using this approach, the problem of distributing tax share is viewed as independent of individual marginal benefits received from government activities. The income is usually considered the best standard to weigh taxpayer's purchasing power. Consume is considered another standard to weigh taxpayer's purchasing power .The property is considered one of the standards to weigh taxpayer's purchasing power too.
?The efficiency principle.
The efficiency principle requires the design of the tax system that should make the social total income that the tax revenue produce to be greater than the social total cost. There are two meanings of the efficiency of the tax revenue, namely economic efficiency of the tax revenue and taxation efficiency.
1. Tax revenue means the minimum of the excess burdens and the maximum of extra incomes under the set tax revenue by economic the meanings of efficiencies.
The neutral principle of tax revenue means that the tax system should not influence every relative price in the market, and then guarantee the consistency of the economic behavior before and after the producer and consumer paying taxes.
2. The most of efficiency means of government finance raises that given
level of revenue while, at the same time, in minimizes the loss in well-being from market production and exchange.
Section 7 The theory of optimal taxation
?The theory of optimal taxation and" optimum principle" and" less optimum principle "
When the tax system of setting up and the tax policy making, the ideal optimum taxation theory assumes the government grasp the taxpayer's complete information and have limitless expropriation and management ability
In case of most, it was realized that the optimum principle of the tax revenue is impossible. The western economists of the sixties in the 20th century lead ―times of excellent principles‖ into the construction of tax system.
―Less optimum principle " proves under the market failures how to make
the loss reach minimum optimization. This has formed important theoretical foundation of the theory of optimal taxation.
?The basic principles of the theory of optimal taxation. 1. The theory of optimal taxes on commodities
The weighing of general tax and alternative duty
The Ramsey Rule
The Corlett—Hague Rule
2. The theory of optimal taxes on incomes
The marginal tax rate of the income tax can't be too high. The optimal rate of income tax structure should be presented U type upside down. 3. The matching theory about taxes on incomes and commodities. Income tax and commodity tax should supplement each other. The choice of the tax system mode depends on the policy goal of the government
The note:
[1] Volume 3 of" selected works of Marx and Engels", People's Press, 1972 edition, Page 22.
[2] Volume 1 of" selected works of Marx and Engels", People's Press, 1972 edition, Page 18.
[3] Volume 2 of" complete works of Marx and Engels", People's Press, 1972 edition, Page 615.
[4] Volume 19 of" complete works of Marx and Engels", People's Press, 1972 edition, Page 20.
Chapter nine The tax system
Purpose and request:
This chapter is based on basic principle of the tax revenue, has introduced the whole process of tax system foundation, and development of our country systematically. It combined the trends of world tax system reform and the current situations of accession to the WTO of our country, explained the reform and perfection of tax systems further; besides, has done brief introduction to the main current categories of taxes of our country. Study through this chapter, require understanding the basic course of tax system development of our country and basic trends of the tax system reform of world, fully realizing requisition on tax system reform of our country the accession to the WTO, holding the basic orientation of the tax system reform of our country, grasping the main content of the value-added tax and Individual Income Tax system especially.
Section 1 The development and reforming of the tax system ?Any country tax system is to meet specific political and economic terms to set up. And as the politics of this country, the tax system changes when the situation of economy and social development has changed. The tax system of our country is from foundation to perfecting constantly, proceeding four great stages. It experience roughly set up and revise at the
tax systems of the year 1950 and 1953; It simplify tax systems in the year of 1958 and 1973, The tax system rebuilt and perfect from 1979 to 1993, tax system reform in 1994 on the need of socialist market economy. 1. Setting-up of the tax system in 1950 and tax system revision of 1953 2. The tax system degeneracy in 1958 and 1973 years
3. The reform of the tax system from 1979 to 1993
4. The reform of the tax system of 1994
?Analysis on the trends and reason of the world tax system reforms In recent years, a lot of countries have put out the new reform measure. The focal point of the reform lies in, during the structural tax system reform, reducing the rate of income tax.
1. The basic trends of the tax system reform of various countries (1) Reduce the rate of the Corporate Income Tax of company directly, and the lasting tax reduction has announced for several years in succession. (2) Reduce the real burden of taxation of the Individual Income Tax. (3) Give favors of tax revenue to the enterprise invests.
2. The reason of the world tax system reform
(1)The violent international competition day by day brought in by the economic globalization .
(2)Reduction and the landslide of the world economic
(3)The economic theory is changed greatly.
(4)The original tax system has drawbacks.
?Accession to the WTO and reform and perfection of the tax system of our country
1. The principle of WTO and requisition on tax system construction 2. Strengthen the legal construction of tax revenue of our country Strengthen the legal construction of tax revenue, improve the transparency of tax revenue, and manage the tax in accordance with the law. They are the basic goal of the tax system reform of our country.
3. The adjustment of the tariff policy of our country
The emphasis of adjustment of the tariff policy of our country is to combine inside and outside. While reducing the overall level of tariffs progressively, adjust the structure of customs tariff of our country rationally.
4. Reform the system of the value-added tax
Change " consumption-type" value-added tax to the value-added tax of" production-type" and expand the implementation range of the current value-added tax further.
5. Reform the system of consumption taxes
Adjust the existing range of tax collection. Change ―tax outside the price" to ―tax in the price"
6. Reform the system of the corporate income tax
Amalgamate the internal and external corporate income tax.
Reduce the rate of the corporate income tax.
7. Reformed the Individual Income Tax
Transform the classify Individual Income Tax to synthesize income tax. On the basis of this, consider widening the base of taxes; simplify the tax rate.
Section 2 Circulate taxes
?Nature and characteristic of circulation tax
Circulate taxes has another name called the taxes on commodities, referring to the tax type taking circulating volume as taxation target. There are several following characteristics to circulate taxes: 1. Regard exchange of commodities as the prerequisite; the range of the tax is wide.
2. Regard the count of circulating volume as the basis of taxes. 3. Implement the flat rate generally.
4. Count and solicit simply and conveniently.
?The categories of circulates taxes of Our country currently Our country's current circulating taxation systems are mainly formed by value-added tax, consumption tax, business tax and tariff, etc.
1. 1.Value-added tax.
The value-added tax is simply a multistage sales tax that exempts the purchase of intermediate goods and services from the tax base. The value-added tax is the difference between sales proceeds and purchases of intermediate goods and services over a period. Different types of the value-added tax customarily are classified according to the manner in which they apply to a firm’s purchase of capital goods, including product-type, income-type and consumption-type VAD.
The common means of administering the tax is the invoice method. In this method, taxpayers
are allowed to deduct the taxes paid on intermediate purchase from the taxes collected from
their sales in determining their tax liability.
The rate of value-added tax of our country sets up two shelves: the basic tax rate, the low tax rate, zero-rate in exporting goods.
2. 2.The consumption tax
The consumption tax is an alternative to income as a tax base regarding consumption or current expenditure.
The taxpayer of the consumption tax is the unit and individuals engaging in producing, consigned processing and import that belong to the range of consumption tax of our country.
The consumption tax sets up 11 tax items altogether. The tax rate relies mainly on flat rate, while a few products suitable quota tax rates. 3. Business tax
Business tax is as the categories of taxes that target with the turnover (the sales amount) that the taxpayer is engaged in the business activities, belonging to circulate rates.
All the units and individuals that were offering the dutiable service made over the non-physical assets or the selling real estate within the boundaries of our country are taxpayer of the business tax.
The classification according to the trade of the business tax has adopted different flat rates separately differently.
The formula is: Tax liabilities equal to turnover times Tax rate. 4. The tariff
The tariff is a piece of categories of taxes that collected goods and article passing in and out of in the national territory of a country. Belong to and circulate taxes. Our country divides into two kinds: the import tax and the export duty collected under the care of customs.
Section 3 Income tax
?Nature and characteristic of the income tax
The income tax is a tax type taking volume of the income of the units and individuals as taxation target.
The income has several following characteristics:
1. The burden of taxation is difficult to shift.
2. Seldom collect tax repeatedly; the burden of taxation is relatively fair. 3. The tax source is general; solicit elasticity.
4. The tax method is complicated; it is difficult to manage.
?The main categories of taxes of the income tax
1. Corporate income tax.
The corporate income tax regards production and other income earn from business operation as target to collect fiscal revenue in the territory China. The taxpayer: the corporation or organization obtaining economic interests of China. (Except foreign-investment enterprise and foreign enterprise) To calculate business income, first add up the receipts the business taken in from sale of its products or services, then add net capital gains; after that, deduct the costs of operating the business including labor cost, interest payments, payments for materials and services purchased from other firms and so on, then we would have a measure of profit of the business ---- its net taxable income.
2. Foreign-investment enterprise and foreign corporate income tax.
The taxpayers are foreign-investment enterprise and foreign enterprise.
Foreign-investment enterprise and foreign corporate income tax adopt the flat rate; the tax rate is 30%, It encloses local income tax rate as much as 3% according to the income volumes of tax liability another, at the same time synthesize tax rate for 33%.
,.The Individual Income Tax.
Chinese citizens of obligation to pay tax and foreign personnel obtaining the income within the boundaries of Chinese are taxpayers of the Individual Income Tax.
Gross income is all income received during the year from taxable sources, including wages and salaries, interest, dividends, rental income and profits from business activity and so on.
Taxable income is the portion of income received by individuals that is subject to personal income tax.
The taxable income is always less than gross income.
To calculate tax liability, taxpayers use a tax rate schedule that employs nine different marginal tax rates.
Individual Income Tax is solicited and definite the rate by classify, adopt the forms of flat rate and the progression rate.
4. Agricultural tax.
The agricultural tax is commonly called as the tax grain; it is the country that is engaged in agricultural production to all, a kind of tax that the unit and individual with the agricultural income collected.
Section 4 Resource tax, property tax and act tax
?Resource tax
1. Nature and function of the resource tax
The resource tax is a tax type taking natural resources as taxation target. The function of the resource tax is lain in mainly: Promote the reasonable development of resources and use effectively; regulate the income of
differential land rent of resource rationally; create the fair competition environment; Increase fiscal revenue, etc.
2. The main categories of taxes of resources tax.
In the current tax system of our country, there are resource tax, land value-added tax, cultivated land occupancy tax and land royalties, etc. belonging to categories of taxes on nature resources.
?Property tax
The property tax is applied to the assessed value of the property and bears no relationship to the owner’s ability to pay.
Property tax rates may be expressed as mill rate or percentage rates. Property tax regards property that taxpayers own as the target. There are the categories of taxes belonging to the property tax in the current tax system of our country: House property tax, contract tax, and the legacy tax planning to offered, etc.
?Act tax
Act tax refers to regarding the taxpayer's a certain specific behavior as the taxation target.
The behavior that our country collect tax to: Regulatory tax of
investment orientation of fixed assets (already stopped being solicited
now), the stamp tax, safeguard building tax in urban and rural areas,
bourse transaction tax, butchery tax, feast tax, etc.
Chapter ten The national assets income
Purpose and request:
This chapter mainly explains the concepts, the composition content, the operation and management and the profit distribution of the national assets income, distribution of income of national assets and impact on finance of SOE reform of our country etc. Through the studying of this chapter,
student should be familiar with nature of national assets in different classes and function; Grasp the operation, the main form of assets income and our country's concrete request for distribution of national assets income; Understand the forming processes and the content of state-run assets of our country; Grasp universal law and theoretical foundation that the national assets of market economy are distributed; Find out the reason of the SOE reform of our country, the goal mode of the SOE reform and way of realizing; Analyze the impact on finance of SOE reform of our country.
Section 1 The composition content of national assets
?The concept of national assets
The broad sense of national assets of refers to all assets that country has. The narrow sense of the national assets is resources that are owned by country on the fingering law, and can offer the total of different economic income directly for the country.
?The composition content of the national assets
1.Classify according to the forming way，the national assets can be divided
into the assets formed for government investment and assets which the country own indirectly.
2. Classify from state-run the assets; divide into at operational national assets and non-operational national assets.
3. Classify in the form, the national assets can be divided into for physical assets and non-physical assets.
4. Classify in region, the national assets divide into the assets with border foreign country and domestic national assets.
?The current situation of the national assets of our country 1. Forming and evolution of the national assets of our country 2. The distribution state of the national assets of our country
Section 2 The operation and management of national assets
?The operations of national assets
1. The realistic meaning of the state-run capital operation 2. The way of the state-run capital operation
?The management of national assets
The management of national assets targets involves operational national assets, and non-operational assets of national administrative institution, still involve various kinds of natural resources that the country has in accordance with the law.
1. The main content of management of national assets
2. The management system of national assets
The management system of national assets refers to various kinds of system total that arrange about management of national assets.
Section 3 The distribution of the national profit
?National assets income forms
The national assets income is the income that the country has obtained relying on their ownership of national assets.
1. The form of operational national assets
The operational national assets are decided by the form of national assets operation, including profit, rent, and dividend mainly.
2. The form of transference incomes in state-run property right The incomes of transference of the national assets right are the ones that referred to passing the transfer of ownership of national assets and national assets using right to. Include two kinds mainly.
?The distribution of income of national assets
On microcosmic, the distribution of income of national assets is the distribution of the profit investors obtain relying on assets ownership.
1. The order of distribution of the profit of the state-owned enterprise 2. The main content of distribution of income of national assets
Section 4 SOE reform and financial rights and interests ?The necessity of deepening the SOE reform
1. Deepen the SOE reform; it is to handle the need of public economy and folk economic relation well.
2. It is a need of adjusting the structure of overall arrangement of national assets of our country to deepen the SOE reform
3. It is a need of the operation efficiency of raising the national assets of our country to deepen the SOE reform
?The goal of the SOE reform and way of realizing
1. The reform goal of state-owned enterprise
2. The realization way of the reform goal of state-owned enterprise 3. The ones that "advance sometimes, retreat sometimes" and" advance and retreat in good time" in deepening the SOE reform of our country urge two-waylay.
?SOE reform and financial rights and interests
The reform of the state-owned enterprise and the adjustment of the structure of overall arrangement of SOE must assign the structure to exert an important influence to the finance. This kind is influenced to show in following respects mainly:
1. While the property right of the state-owned enterprise is made over, incomes increase obviously in ownership of national assets in the fiscal revenue.
2. The profits turned over to the state of state-owned enterprise in the fiscal revenue reduce relatively, while the tax revenue increases correspondingly.
Chapter eleven National debt
Purpose and Request
This chapter discusses basic theories of the national debt and rudimentary knowledge of national debt management mainly. Through this chapter, require knowing production, evolution, function and forming principle of the national debt bear correctly. Familiar with the issue, redemption circulates of the national debt. On this basis, state of the scale of the national debt since the reform of our country and developing further, the condition for issuing and the change of the way of national debt, the development of the market and reform the perfect train of thought.
Section 1 Summary of the national debt
?Production and development of the national debt
1. Meaning of the national debt
National debt refer to central government issue bond or borrow money from foreign government, international organization, bank both at home and abroad
2. Production and development of the national debt
3. Historical gradual progress of the national debt of our country
?Function of the modern national debt
1. Remedy the financial deficit
2. Raise the construction fund
3. Regulate economy
?Burden and limit of the national debt
1. The national debt bearing
2. Limit of the national debt
National debt limit refer to national debt supreme amount of scale, or the appropriate scale of
the national debt.
?Kind and structure of the national debt
1.Kinds of the national debt
2.Structure of the national debt
(1)The time limit structure of the national debt means that the national debts of different time limits take the proportion of the total amount of the national debt.
(2)The holder structures of national debt
The holder structures of national debt, in different to make the investment the proportions of distribution of colony national debt
Section 2 Issue and redemption of the national debt ?The condition of national debt issue
The issue of the national debt refers to the selling of the national debt or the course, which those who are made the investment take up. It is the starting point of the national debt runs and basic link.
1. Issue price of the national debt
The issue price of the national debt refers to the sale price of the
government bond. According to the relation with denomination,
national debt issue price can divide into three kinds.
2、Interest rate of the national debt
The interest rate of the national debt is the denomination of national
debt interest and proportion.
?Issuing way of the national debt
1(Way that the regular income is sold
2(Raise the auction way commonly
3(Sell the way in succession
4(Direct marketing method
5(Comprehensive way
6(Force the apportionment way
?Repaying capital with interest of national debt
1. The way to repay principal
2. The source of the repayment of principal fund
(1) Set up sinking fund
(2) Through the budget and prop up
(3) Borrow the new debt
3. The way to pay the interest
Section 3 Circulation of the national debt
?Classification and function of the market that national debt circulates
1. National debt market refers to trade of national debt, is the important component of security market. The national debt market can be divided into two parts according to the stage or level of the trade: The issuing market of the national debt and the circulating market of the national debt.
2. General function with four respects of the market that the national debt circulates: First, realize the issuing smoothly of the national debt; Second, realize the redemption of the national debt; Third, regulate the operation of the social fund; Fourth, realize the open market operation of the Central Bank, regulate the money supply.
?The trade way on the circulation market of the national debt
?The development and perfection of the circulation market of the
national debt of our country
The brief summary of this chapter
1. National debt refer to central government issue bond or borrow money from foreign government, international organization, bank both at home and abroad. It is a special finance and debt category. National debt evolves from the latter stage of slave society, and receives real development in the capitalist society.
2. The national debt has the function of remedy the financial deficit,
raise the construction fund and regulate economy.
3. The issue of the national debt includes two basic problems mainly:
Condition for issuing (interest rate and price), and issuing way of the
national debt. The national debt market of our country has got certain
development, but still need to perfect further since the reform.
Chapter twelve Financial decision
Purpose and request:
Financial decision is an important link in financial operating mechanism. Through the studying of this chapter, demand to grasp concept and characteristic of financial decision, different financial decision system operation ways.
Section 1 The summary of financial decision
?Concept and classification of financial decision
Financial decision is a category of fiscal administration. It means in order to realize the financial function, by financial decision according to certain decision in the financial policy procedure subject, made the decision and choice in respects, such as financial system, financial plan , action scheme
and measure of guaranteeing ,etc., it is the important component of government's public decision .
?Characteristic of financial decision
Under the market economy condition, there are two kinds of basic decision types, one is that the market makes policy; another kind is not that the market makes policy (namely public decision).
Section 2 Financial decision systems
The financial decision system is the country in order to deal with the
financial affairs effectively
The financial decision system has three kinds: People's Congress
system, representative system, and dictatorship
?Financial decision system of the People's Congress system
?The financial decision system of representative system
Representative system generally exists in the contemporary developed capitalist country. Representative system has the following several kinds of basic forms:
1. The president --Representative system. Israel U.S.A. is as the model the most.
2. Cabinet --Representative system. (Britain, Germany, Italy, Japan,
Australia, Austria, Belgium, Canada, Denmark, New Zealand, Israel,
etc).
3.Committee --Representative system. (Swiss Confederation).
Section 3 Public choice
?The summary of the theory
The theory thinks, the human society is made up of two markets, one
is economic market, and another one is a political market. The subject
of the activity on the economic market is consumers (demand person)
and manufacturer (supplier); the subject of the activity on the political
market is voter, interest group (demand person) and politician, officer
(supplier). .
?Analysis of the direct democratic decision-making mechanism Mean that the citizen votes directly, participate in public decision, and regard voting results as a kind of decision system chosen finally.
?Analysis of the indirect democratic decision-making mechanism
The indirect democratic decision-making mechanism means that it is
not votes and carries on public decision directly by the citizen, but is
voted by them and elects to offer a few people as representatives and
the representatives make a kind of decision system of public decision
according to the political procedure
1. Characteristic of voter's behavior
(1) Some voters will give up the franchise.
(2) Some have common voter of benefit will form the special interest
group.
2. Goal and characteristic of politician's behavior
3. Bureaucrat's performance-based objective and characteristic
Chapter thirteen
National budget and management system of the budget
Purpose and request
This chapter is based on content of fiscal revenues and expenditure;
introduce basic conception, the mainframe and procedure of running of
national budget systematically. Explain the connection between
financial fund, the budgetary funds and extra budgetary fund, and discuss the concept, historical development and current situation to the management system of the budget. Through the studying of this chapter, require grasping the concepts of national budget, the extra budgetary fund and budget management system correctly, fully realize the essential feature of making national budget of public finance and budget form and understand the meaning of managing reform of extra budgetary fund of our country deeply, hold the developing direction of the management system of the budget.
Section 1 Meaning and principle of national budget
?The meaning of national budget
National budget is a national annual financial revenue and expenditure plan of passing examination and approval of due course of law. It is the important tool of raising the fund and distributing the financial fund .It is the important lever that adjusts and control national economical operation.
1. The plan of the national annual financial revenue and expenditure 2. The legal file of examination and approval of due course of law. 3. The important tool of realizing financial function.
?The composition of national budget
1. The budget of the Central Committee and local budget. (1) The budget of the Central Committee. The financial revenue and expenditure plan of the central government that means with the approval of due course of law.
(2) Local budget. The financial revenue and expenditure plans of the local governments at all levels that mean with the approval of due
course of law. Including budget of four grades under grade in the provincial and province.
2. Master budget, department budget and unit budget.
(1) Financial master budget.
(2) Department budget.
(3) Unit budget.
?The guiding theory that should be followed when the country chooses budget form and guiding theory, that is to say it is the policy of making revenue and expenditure plan of government finance. 1. Integrality principle.
2. Unity principle.
3. Authenticity principle.
4. The principle of making public nature.
5. Annual quality principle.
Section 2 The management of national budget
?Meaning and principle of management of national budget The management of national budget is the country according to rising for to budget fund of laws and regulations, distribution, general name using organization that carry on, coordinating and supervise, etc. activity.
1. The meaning of management of national budget
(1) The subject of management of national budget is the country. (2) The object of management of national budget is budget fund. (3) The basis of management of national budget is relevant laws and regulations and principles and policies of the country, Especially"
budget law of the People's Republic of China".
(4) The overall purpose of management of national budget is to finish the revenue and expenditure task of national budget.
2. The principle of management of national budget
(1) Unified leadership, differentiated controls
(2) The principle that the ownership of property combines with duties and responsibilities.
(3) Manage the principle in accordance with the law
?
1. The current budget is worked out, carrying out and final accounts
procedure
(1) Establishment and examination and approval of the budget (2) The execution of the budget
(3) Final accounts.
2. Separating the mechanism each other of link of the budget The separation mechanism of the link of the budget means that works out, carry out, supervise the budget separated to manage the new mechanism in budget.
3. The management of period of standard budget
?The reform of the management system of budget
1. Multiple budgets
(1) The meaning of multiple budgets. Multiple budget divides all financial receipts and expenditures in the same budget year according to nature, Weave into two or more than two revenue and expenditure contrast forms separately, guarantee specific budget expenditure with the specific budget earner, And make the two there are steady
corresponding relations.
(2) The content of current multiple budget of our country: Our country since from 1992 carries on the establishment of the budget and manage according to multiple budgets, its content divides into two parts: Regular budget and constructive budget. (3) Need to perfect the multiple budget system of our country
2.The meaning of the zero-base budget.
The zero-base budget is while working out the budget, all starts from scratch. Come to say strictly, it means that while working out the annual budget, the task to each department is verified all-sided strictly, then define the appropriation budget of every department. The zero-base budget has three basic key elements, namely make policy in the unit, package decision and arranging in an order.
3. Department budget
(1) Meaning and content of the department budget
Say popularly, the department budget is a budget of a department. The department budget is the budget reflecting the revenue and expenditure activity of department all-sided.
(2) Our country works out the progress of the department budget. 4. The system of concentrated collecting and pay of national treasury System of concentrated collecting and pay mean implement and concentrate on take over and system that pays so-called national treasuries to financial fund, because its core is to carry on centralized management to the cash through the single account of national treasury.
Section 3 Extrabudgetary funds
?Meaning and content of the extrabudgetary fund
1. The meaning of the extrabudgetary fund
2. Government offices, institutions, public organizations and other for
organization in fulfillment of or acting administration office function,
Collect, draw, raise and arrange for using according to the national
laws and regulations and rule with legal effect, Have not included in
various kinds of financial quality fund of management of financial
budget. The extrabudgetary fund belongs to a kind of financial quality
fund on nature
3. The content of the extrabudgetary fund
?Reason and question of inflation of the extrabudgetary fund 1.The reason why the extrabudgetary fund expands
2. The question caused that the extrabudgetary fund expands
?The management of the extrabudgetary fund
1、The management system of the extra-budgetary two lines of revenue
and expenditure
2. Synthesize the financial budget to manage
3. Accelerate the system of expenses of taxation to reform
Section 4 The management system of national budget ?Essence and content of the management system of national budget
1.Meaning and essence of the management system of the budget
The management system of the budget is to stipulate the revenue and
expenditure range of budget and a system of managing the functions
and powers of the budget with the local government and local
governments at all levels in the central authorities.
(1) The structure of the state power.
(2) Nature and function of the country.
(3) Country's intervention degree to the social economic life. (4) The economic system of the country.
2. The content of the management system of the budget
(1) Manage the division of the functions and powers in budget. (2) The division of the revenue and expenditure range of budget. (3) Inter-governmental transfer payment system
?The reform route of the management system of the budget(1980—
—1993)
?The budget management system of system of tax allocation 1. Setting-up and adjustment of the budget management system of system of tax allocation
(1) The main content of budget system reform of system of tax allocation in 1994.
(2) The adjustment of the financial management system of system of tax allocation
2. The budget management system of system of tax allocation needs continuing perfectly
(1)Effects and defects of the current system of tax allocation system (2)Perfect the orientation of the financial management system of system of tax allocation further
This seal of brief summaries:
National budget is a national annual financial revenue and expenditure plan of passing examination and approval of due course of law. It is the important tool of raising the fund and distributing the financial
fund .It is the important lever that adjusts and control national economical operation.
National budget is a national annual financial revenue and expenditure plan of passing examination and approval of due course of law, It is that the country raises for and distribute the important tool of the financial fund of concentrating nature, It is the important lever which adjusts and control national economical operation. The composition of national budget is budget of the Central Committee and local budget according to a grade of each, manage the range and divide into for master budget, department budget and unit budget according to revenue and expenditure.
And reform want and carry out certain principle the foundations of system budget, though, budget principles in the stage of economic development there are differences different politics various countries, But there are five principles that the various countries admit generally, Namely integrality, unity, authenticity, making public nature and annual quality.
Manage the key link that is fiscal administration in national budget. The budget is managed and adheres to the unified leadership, differentiated control principle, the principle that the ownership of property combines with duties and responsibilities, Manage the principle in accordance with the law. National budget is managed and realized through the procedures, such as establishment, verifying, carrying out, final accounts of the budget, supervising, etc. And need the restriction mechanism setting up every link and separate. Our country implement standard budget need and lengthen budget make time, thinning to make content by period; the focal point of the work of the budget should be changed into" strengthening the budget and desalinize final accounts".
And financial the two cores of reforms work our country the 1990s
management system reform budget financial system reforms system of tax allocation. Our country in multiple budget make form,, and national treasury concentrate on and charge budget preparing method managerial to go on system innovation and practice one zero-base budget organizational form department, And has made certain achievement. In the future, will take around the setting-up of the public financial system, the dynamics that especially deepen the management system of national treasury reform, improve the efficiency of the government management of money matters constantly.
The extrabudgetary fund is regarded as the economic system reform of our country and result of the financial system reform, Have really played a positive role in history, but has caused a great deal of questions on profound level, Have dismember the financial resource distribution function, weakened the macro adjustments and controls of the government, bearing, influenced assigning fairly after aggravating the enterprise. To the management of the extrabudgetary fund, our country has adopted fiscal administration, extra-budgetary two lines of revenue and expenditure management, etc. of synthesizing to reform, have made certain effect. At present, advance the reform of system of" expenses of taxation" steadily positively, set up and rely mainly on tax revenue, charge the normal fiscal revenues mechanism in order to be complemented, including in management of the budget in unison mainly.
The management system of national budget is to deal with as basic system of assigning the relation of inter-governmental finance at all levels in one country's financial system, Its key question is budget revenue and expenditure range and the division which manages the functions and powers and relation of checking and balance each other of governments at all levels. The system of tax allocation is a kind of important form in the management system of national budget; our
country has already formed the budget management system of system of tax allocation frame tentatively at present. The foundation that the budget management system of system of tax allocation perfects further is the defining rationally of inter-governmental function, The core is the tax revenues, how the administration authority of the tax revenue is divided, the inter-governmental transfer payment system of the standard is the key that a system of tax allocation is perfect.
Chapter fourteen Financial balance
Purpose and request
According to national budget equalization, the financial revenue and expenditure identically equal; According to the financial practices of the various countries, the financial revenue and expenditure are just equal to be accidental. This chapter will be grasped especially when being studied: What calls the financial balance? Why are the financial revenue and expenditure uneven? The finance is uneven but usually shown as the financial deficit, then, also how to know the financial deficit to economic influence? As soon as the financial deficit appears, with what means is the government remedied? Will understand further again at the same time, during modern market economical operation, the financial balance is also often with the close connection of government consciousness, Should combine the financial balance with adjusting and control the social total supply and demand balanced relation in the government all-sidled and know, In order to lay the foundation to the choice of the financial policy.
Section 1 Financial revenue and expenditure contradiction and
balance
?The meaning of the financial balance
Financial balances is the abbreviations of" fiscal balance", meaning
annual fiscal revenues and annual expenditure equaling to or balanced
in total amount compare with usually
1.Understand financial balances think and equal to definitely balanced
machineries.
2.Understand that must there are overall views in the financial balance,
can't talk about the financial balance on the financial balance.
3.Understand that the financial balance should adhere to the view of
the dynamic equilibrium, can't confine to the static balance.
4.Understand that must pay attention to the authenticity of the
financial balance in financial balance, prevent the false balance
appearing.
?Financial revenue and expenditure contradiction and balanced transformation
1.The objectivity of the financial revenue and expenditure
contradiction.
2.The regularity of the financial revenue and expenditure with unified
contradiction.
3. Realize the condition and request of revenue and expenditure with
relatively unified contradiction.
?Our country's traditional financial balance theory
1.The theory origin of the financial balance theory of the tradition and historical background produced.
2.The main content of the financial balance theory of the tradition.
3.The realistic meaning of the financial balance theory of the tradition.
Section 2
Financial balance and social total supply and demand are
balanced
?Total social supply and total social demand
1. It is the important contradiction of economic development of the
goods to supply it with the demand contradiction.
2. The balanced sign with the aggregate demand of aggregate supply.
3.The aggregate supply is with the out-of-balance impact on
economical operation of aggregate demand.
4.The total social supply is with the possibility analysis with
out-of-balance total social demand.
5.The total social supply is with the reality analysis with
out-of-balance total social demand
?Financial balance and overall balance
1.When the total social demand is crossed and greater than the aggregate supply, namely act as + S + T + M of C
2.When greater than the aggregate demand, then revenue and expenditure of government finance are adopted with above-mentioned opposite measures.
Section 3 Financial deficit
?The concept of the financial deficit
1. Hard deficit and soft deficit. At debt income and regular incomes count the normal fiscal revenues together hard deficits, Count debt expenditure in the normal expenditure together with regular expenditure too at the
same time.
2. The final accounts deficit sets up the deficit and in advance. The final accounts deficit means that in a certain business year, the financial revenue and expenditure of the plan are balanced, Namely government arrange deficit is and in the course of budget enforcement at the budget, Because subjective and objective measurable factor influence and cause final accounts appear expenditure greater than the situations of income, This kind supports and greater than the difference charged and shown as" final accounts deficit" promptly in the final state accounts, What it proved is a kind of fact.
3. Annual quality deficit and periodic deficit. The annual quality deficit is the financial deficit that is formed in the middle in budget year, Above-mentioned two groups of financial deficits talked about of ours, are all the deficit of this kind, And the financial deficit that usually talk about makes a general reference to the annual quality financial deficit.
?The means to remedy financial deficit
1. Financial issue. Financial issue refers to the issuance of paper money that the currency authorities of a country increase in order to remedy the financial deficit in the government.
2. The finance is overdrawn.
3. Draw on the financial surplus of last year or before.
4.Issue the bonds
?The economy of the financial deficit is influenced
1. The effect of squeezing of the financial deficit. The financial deficit is deposited and squeezing the effect, mean that the governmental investment that the government is being expanded through the deficit will be caused not to be the reducing correspondingly of governmental investment, Namely the governmental investment increasing has been pushed out of it has been that a part of a government department makes
the investment.
2. The pulling effect of the financial deficit. The result of impelling the economic growth and private investment to increase of taking shape in expenditure of financial deficit of the government that the financial deficit spurs the effect to mean.
This seal of brief summaries
This chapter has explained the basic principle about financial balance and financial deficit mainly.
Our country's traditional financial balance theory, took shape under planned economic system.
The existence of the financial deficit is a kind of world economic phenomenon at present.
Chapter fifteen Financial policy
Purpose and request:
The financial policy is the application in the real economic activity of financial theory; it has important function on the full play of the financial function under the condition of market economy. Will understand when being studied this chapter: What is a financial policy? What is the main function of the financial policy? What are the goal and tool of the financial policy? Should grasp the necessity that the financial policy cooperate with monetary policy especially at the same time, and is directed against different economic state financial policies and cooperate with monetary policy the choice of the mode. Especially our country appears under the trend of the deflation, the orientation of financial policy of spuring economic growth through expanding domestic demand, and then realizes the theory meaning of implementing the positive financial policy and realistic meaning all-sidled.
Section 1 The financial policy is summed up
?Concept and nature of the financial policy
1. The financial policy is a relatively intact policy system. 2. The financial policy is to guide the unity with the objective law subjectively.
3. The financial policy has obvious stage and relative stability. 4. The financial policy is the important part of an economic policy.
?The basic function of the financial policy
1. Lead the function.
2. Coordinate the function.
3. Stabilize the function
?The main type of the financial policy
1.Automatic and steady financial policy and financial policy which the camera choose.
2.Financial policy, the financial policy and neutral financial policy of tightening nature of expanding nature.
?The goal of financial policy
The goal of financial policy is that the government adjusts and controls the economic intention through scheduling to implement the expectation reached in financial policy.
1. Realize that fully obtains employment. The labor employment means that the person with labor capacity participates in a certain social labor and with this economic activity of obtaining remuneration or managing the income.
2. The income is distributed fairly. It is fair to mean countries social member assign fair the improvement or to dwindle income gaps of degrees by income generally for income to assign. 3. Economy increases steadily. Steady important embodiments relatively stable economy, general levels
too high or too low price, Are to economic development and social stability all unfavorable. 3. The improvement of social life quality. Social life quality includes material progress and spiritual civilization.
?inancial policy tool
The financial policy tool is various kinds of financial means that the government chooses in order to realize the goal of set financial policy. 1. The tax revenue. The function form of the tax revenue is the categories of taxes, tax rate and reduces or remit the taxes.
2. The expenditure of buying nature. The function form of the expenditure of buying nature, buy scale of the expenditure and expenditure structure 3. The expenditure of shifting nature.
4. Bonds. Its function form is issued amount, the bonds target and bonds interest rate of the bonds.
5. The budget. The policy of the budget can adopt three kinds of forms to realize regulating action, namely deficit budget, surplus budget and balanced budget.
Section 2 Influence of the financial policy and effect analysis ?The impact on economic society of financial policy
1. The influence on the production link of financial policy.
2. The financial policy is to distributing the influence of the link. 3. The influence of the link to circulating of financial policy. 4. The impact on link of social consumption of financial policy.
?Financial policy multiplier
?The effect analysis of financial policy
1. The effect of financial policy. The effect of financial policy means that the financial policy acts on in the result of economy, society 2. The main method to analyze in validity of financial policy.
(1) Expenses ----The comparative law of achievement (the income). (2) Expenses ----Social function comparative law.
(3) Expenses ----Contribute the comparative law
3. Give play to the role of financial policy all-sided.
(1) Realize the limitation of the financial policy correctly (2) Reduce the deviation of the effect of financial policy. (3) Improve the financial understanding of policy.
Section 3 Theory and practice that the financial policy cooperates
with monetary policy
?The concept function of the monetary policy
1. The concept of the monetary policy. The monetary policy refers to the basic criterion of money supply and money flow organizational management that the country makes in order to realize the goal of certain macro economy.
2. The role in economical operation of the market of monetary policy. 3. The goal of the monetary policy. The basic goal of the monetary policy of our country is to stabilize the currency, and bring about an economic advance with this.
4. Monetary policy tool
(1) Central bank is to the payment for goods of every business bank (the specialized bank).
(2) The system of capital reserve of the deposit.
(3) Interest rate.
(4) The open market operates.
5. The basic type of the monetary policy
(1) The monetary policy of expanding nature. It means that the money supply exceeds the course actual requirement to the currency of economical operation; Increase the monetary policy of having irritating function to the aggregate demand.
(2)The monetary policy of tightening nature. It means that the money supply is smaller than the actual requirement of the currency, increases the monetary policy of having inhibition to the aggregate demand (3) Neutral monetary policy. It means that the money supply is equal to the requirement of the currency on the whole, the monetary policy not exerting an influence to the contrast states of the total social demand and aggregate supply basically
?Financial policy and monetary policy coordinate the theoretical foundation of cooperating
?Financial policies cooperate with the monetary policy in the way 1. The association different from the monetary policy of financial policy. (1) The loose financial policy is matched with the loose monetary policy (2) Tight financial policy is matched with the urgent monetary policy (3) The loose financial policy is matched with the urgent monetary policy (4) Tight financial policy is matched with the loose monetary policy 2. The choice of the way that the financial policy cooperates with monetary policy.
?The application of the financial policy and monetary policy in the realistic economical operation of our country
This seal of brief summaries
The financial policy is that the government is used in the means mainly to economic macro adjustments and controls under a condition of market economy.
It leads functions, coordinate the function and stabilize the function. And economy produce between financial policy and society fields exerts an extensive influence again.
There is the reality of our country under trend of deflation, should choose
the positive financial policy, And give play to the role of ones that
cooperate with the sane monetary policy together, drive national economy
to last to develop healthily.
本文档为【财政学英文课件】，请使用软件OFFICE或WPS软件打开。作品中的文字与图均可以修改和编辑，
图片更改请在作品中右键图片并更换，文字修改请直接点击文字进行修改，也可以新增和删除文档中的内容。
该文档来自用户分享，如有侵权行为请发邮件ishare@vip.sina.com联系网站客服，我们会及时删除。
[版权声明] 本站所有资料为用户分享产生，若发现您的权利被侵害，请联系客服邮件isharekefu@iask.cn，我们尽快处理。
本作品所展示的图片、画像、字体、音乐的版权可能需版权方额外授权，请谨慎使用。
网站提供的党政主题相关内容(国旗、国徽、党徽..)目的在于配合国家政策宣传，仅限个人学习分享使用，禁止用于任何广告和商用目的。
浙公网安备 33021202002483