Financial Investment Review: An Important Link In Public Finance Reform

Financial investment review is an important activity of public finance. Investment expenditure has always been the most important part of China's fiscal expenditure.

On the one hand, the reform of fiscal system in China has decided that fiscal investment expenditure must also be changed toward public orientation. On the other hand, the public expenditure on fiscal investment is one of the basic components of the public financial system. It supports and promotes the process of public finance.

Although the content and scope of financial investment have changed greatly, the proportion of total expenditure has declined, but it has not denied the importance of investment in fiscal expenditure. It still plays a decisive role in fiscal expenditure activities and even in the whole financial activities.

Therefore, how to strengthen the regulation, restriction, supervision and management of financial investment is still a major issue in the process of public finance system.

Financial investment review activities are important means to strengthen financial investment norms and budget management.

The evaluation of financial investment, the direct constraint and supervision of the activities of the budget and completion (knot) calculation of the financial investment projects, will play an irreplaceable and direct role in guaranteeing the quality of the project, strengthening the budget and financial management of the project, improving the efficiency of the financial investment, and ensuring the normal and smooth progress of the investment activities of the finance and government.

Therefore, financial investment review activities are an important part of financial investment activities, and also an important part of financial performance of their functions.

The reform of financial investment appraisal system based on market economy is based on the evaluation of financial investment projects, which are mainly related to the relevant investment plans and budgets of the state, relevant financial, accounting, financial investment evaluation, economic contracts, and laws, regulations and rules and regulations related to engineering construction.

These have different contents and requirements under different economic systems.

Financial investment in the market economy is mainly public. It provides external conditions such as infrastructure and public facilities directly to the market. Its investment content has changed a lot, and its investment scope has been greatly reduced. It is no longer the basic means for the state to plan and control the whole social economic activities.

Against this background, the nature and purpose of financial investment review activities can not be fundamentally changed, from serving the planned economy to serving the market economy.

The financial investment review system and its contents, methods and methods will inevitably change accordingly, and adapt to the market economy from the adaptation to the planned economy.

The reform of financial investment appraisal system is the specific step of public finance reform. In terms of public finance investment, its project benefits must be evaluated in a social way rather than in a commercial way.

As a public investment, its primary purpose is to serve the interests of the society, rather than pursuing the market profit of the project itself.

Therefore, the evaluation standard of public investment effect can not be limited to the market cost and profit of the project itself, but also must include the social cost and the social benefits generated by the project.

This is not suitable for the commercial method to examine and evaluate, but the social cost and benefit method should be adopted for analysis and evaluation.

Because of this, with the deepening of reform leading to marketization, it is becoming more and more inappropriate for China's Construction Bank to continue its financial investment evaluation function.

Against this background, the financial sector has taken over the function of financial investment review, and has reformed the financial investment review system. It is a measure that complies with the reform of the market-oriented economy, and is an important concrete content and step in the reform of public finance.

Under the new financial investment appraisal system, besides the national plan, the budget and the relevant rules and regulations, the appraisal activities should be combined with the characteristics of the market economy.

To this end, more attention should be paid to relevant laws and regulations, economic contracts, market information, including market prices and project costs, etc. under the precondition of presided over and played a central role in the financial sector, appraisal activities should also be adopted as far as possible in the market way so as to improve the efficiency of the evaluation activities themselves.

The approval activities for investment projects, feasibility reports, preliminary design budgets, etc., as well as the establishment of investment projects, bidding, construction contracts and construction management documents, should also be based on the basis of the market.

Against this background, no matter how the financial investment review system is designed and stipulated, it can not reflect the market factors and the development of the market system in China. It is impossible to not reflect the fundamental requirements of the market economy in the specific financial investment evaluation activities.

Therefore, the reform of financial investment appraisal system is a specific content of the reform of public finance system in China, and it directly promotes the process of public finance.

The appraisal activities will greatly improve the efficiency of financial investment. In terms of specific financial investment evaluation, the main contents are: project capital construction procedure and implementation of capital construction management system; rationality of project bidding tender; project budget estimate, budget completion, final completion (final calculation); utilization and management of financial funds for construction projects; project budget, budget execution and other related situations related to process cost; special procuratorial work on three items of financial funds such as science and technology fees, technical reform discount, land and resources investigation fees, and other businesses entrusted by the Ministry of finance.

These activities are more of a micro economic category, because they are judged by the efficiency of the investment projects themselves, and are assessed by the activities, activities and results of the projects themselves, rather than the macroeconomic effects of investment.

It examines and reviews the financial investment projects from the establishment and preliminary design proposals, to determine the investment budgetary estimate of the project, to arrange the investment budget of the project, to the bidding and organization of the project, and finally to the whole process of the project acceptance, settlement and final accounts.

Although the evaluation of the project involves social cost and social benefits, it still revolves around the project itself.

The "micro" of financial investment review activities should be the concrete embodiment of the market economy's basic requirements for financial activities.

The reform of the market makes the micro content and the macro content of the financial investment activities separate, making the financial investment review go deep into the micro economic level, and it can assess and evaluate the investment effect of the project itself, which is very important for improving the efficiency of China's financial investment.

The reform of financial investment appraisal system in China is almost at the same time as the implementation of active fiscal policy.

This is of great significance for improving the efficiency of fiscal investment and saving, which is still a very limited financial fund and quicken the economic development of our country.

The implementation of the proactive fiscal policy will make the financial investment expand at a scale of 100 billion yuan. At this time, if we only pay attention to the macro effect of financial investment without considering the micro efficiency of financial investment, we will wastefully spend money and arrange investment projects arbitrarily, which will form a new huge waste.

China is a country in which capital and financial resources are extremely scarce. Any financial investment must be reckless, highly efficient and efficient.

The implementation of the financial investment policy and the implementation of the active fiscal policy played a great role in saving investment. In the past 1999-2001 years, the national financial investment appraisal institutions at all levels reviewed the unreasonable funds of 35 billion 200 million yuan in the evaluation of capital construction projects and special expenditure projects, and made clear this point.

It is an important guarantee for the reform of the budgetary system of the government. The reform of the government budget system is the central link and core content of the reform of the public finance system.

Since 1999, China's reform of the government budget system has entered a substantive stage, but also encountered a lot of resistance difficulties, including many technical difficulties, making it difficult to promote the public reform.

In these technical problems, how to refine the budget is included.

Financial investment evaluation is an integral part of the budget management of fiscal expenditure. Therefore, the reform of financial investment appraisal system is helpful to overcome this problem.

The coordination of financial investment appraisal system reform and government budget system reform is mainly manifested in: it can cooperate with departmental budget reform and establish the mechanism of "first review and post establishment".

From the practice of departmental budgeting, the key point is the expenditure budget, and the difficulty of expenditure budgeting is the project expenditure budget.

It requires strict examination of various procedures such as project declaration, project reserve, project audit, project expenditure budgeting, and so on, so as to ensure the quality of budget preparation.

The establishment of the financial investment evaluation institution will help to overcome the shortcomings of the lack of investment appraisal professionals in the financial sector, refine the budget and improve the quality of budget preparation.

It can cooperate with the reform of the treasury management system and establish the mechanism of "first evaluation after funding".

The capital allocation of capital construction projects has the characteristics of long cycle, strong professional and dynamic management. The appropriation of financial construction funds is pferred from the current level by level to the State Treasury directly paid to the project construction units or construction units, making the fiscal treasury management and financial investment evaluation easier to coordinate and strengthen the management of financial investment expenditure.

It can cooperate with the government's centralized procurement and establish a mechanism of "first evaluation and post tendering".

According to the characteristics of the project, the government procurement system must be linked to the current capital construction procedures.

The preliminary design and budgetary estimate of the capital construction projects included in the government procurement have been approved by the relevant departments, and the project construction units have passed the project budget to the financial departments, and have been professionally assessed by the financial investment appraisal center, thus greatly improving the efficiency and quality of government procurement.

All these means that the reform of the financial investment review system is in line with the requirements of the reform of public finance, and will directly and specifically promote the establishment and perfection of the public financial system in China.