All countries in the world, whether federal or unitary, are generally practicing hierarchical management, there is a central government and local governments, the central government and local governments to perform their functions. The central government and local governments to exercise their powers, there is a need to have the corresponding financial resources to ensure that the budget should be set up accordingly.
China's national budget consists of the central budget and local budget. Local budgets are divided into provinces, autonomous regions, municipalities directly under the central government, cities, autonomous regions, counties, autonomous counties, cities, municipal districts, townships, ethnic townships, towns. The central budget consists of the budgets of the various departments of the central government, including the amount of local revenues transferred to the central government and the amount of central government rebates and subsidized expenditures to the local government. The local budget consists of the budgets of each department of the local government and the general budgets of the subordinate governments to which it belongs. The departmental budget is a budget reflecting all the revenues and expenditures of a department, reflecting the use of financial funds by each department to fulfill its duties. Departmental revenues include financial budget allocations, extrabudgetary funds for administrative units, business revenues, business unit operating revenues and other revenues; departmental expenditures include expenditures arranged with the above revenues. Departmental budget preparation unit in addition to the government departments and government departments directly under the government, but also includes other financial departments directly with the financial sector, the first level of the budget unit.
The form of the state budget refers to the arrangement of the budget revenue and expenditure forms, there are single-type budget and double-type budget. Single-type budget is the year all the income and expenditure in a program form to reflect and calculate. Compound budget is all the year's income and expenditure in several independent program form to reflect. In China, the central budget and local government budgets at all levels should be prepared in accordance with the compound budget, the compound budget is divided into the government public **** budget, state-owned assets operating budget, social security budget and other budgets. In practice, China has prepared regular budget and constructive budget. The recurrent budget revenue is the income from all taxes and other general revenues; the recurrent budget expenditure is the State's expenditure on maintaining government activities, safeguarding national security and social order, developing all undertakings and on people's life and society. Constructive budget revenues are regular budget balances, special constructive revenues and debt revenues; constructive budget expenditures are expenditures for economic construction. As some reforms in budget management were not yet in place, the role was not felt to be significant in practice, and then no more compound budgets were prepared. But from the need to improve China's socialist market economy mechanism, China should still prepare a compound budget, the future compound budget should be composed of general revenue and expenditure budget, state capital budget, social security budget and other budgets.
China's budget now submitted to the National People's Congress for review and approval includes three types of forms: (1) general budget revenue and expenditure table. This table reflects the scale of general budget revenues and expenditures, the sources of revenues and the direction of expenditures, including the table of national budget revenues implementation, the table of central budget revenues implementation, the table of local budget revenues implementation, the table of national budget expenditures implementation, the table of central budget expenditures implementation, and the table of local budget expenditures implementation of the previous budgetary year; and the new budgetary year's table of national budget revenues, the table of central budget revenues, the table of local budget Income Table, National Budget Expenditure Table, Central Budget Expenditure Table, Local Budget Expenditure Table for the new budget year. (2) Central governmental fund budget income and expenditure statement. Revenue from governmental funds refers to the revenue from various funds (capitals and surcharges) that are collected, solicited or established with governmental credibility from enterprises, institutions and individuals, managed by the financial department, and have specific purposes, in accordance with the projects and standards approved by the State Council or the Ministry of Finance. According to the regulations, the governmental fund to implement two lines of management, the full amount of income to the state treasury, first received before spending, earmarked for the purpose, and budgeted separately, self-balancing, the balance carried over to the next year to continue to use. The central government funds mainly include Electricity Construction Fund, Three Gorges Project Construction Fund, Railway Construction Fund, Civil Aviation Infrastructure Construction Fund, Port Construction Fee, City Telephone Initial Installation Fee Fund, Civil Aviation Airport Management and Construction Fee, Water Conservancy Construction Fund, Foreign Trade Development Fund, Iodized Salt Fund, Tourism Development Fund, Cocoon and Silk Development Fund, Power Supply and Distribution Discount Fee, Cultural Utilities Construction Fee, Land Reimbursement Fund, and Coal in Lieu of Oil Fund, Postal Special Funds, Airworthiness Fund, Forest Breeding Fund, Agricultural Network Loan Repayment Fund, National Film Development Fund, Reservoir Maintenance and Construction Fund, Tobacco Business After-tax Profit, South-to-North Water Diversion Project Fund, and Forest Vegetation Rehabilitation Fee. (3) Relevant schedules. Including the central to local tax rebates and subsidies expenditure schedule, the central financial support for agriculture expenditure table, the central financial science and technology expenditure table, the central financial education expenditure table, the central financial social security expenditure table, the central financial health care expenditure table.