What Is Fiscal Planning?

The fiscal plan is the state's prediction and planning of the fiscal revenue and expenditure scale, speed, structure, and balance in accordance with the needs of fulfilling its functions, and in accordance with objective economic laws and socio-economic development plans. It is an important tool for state organizations to manage fiscal distribution activities and an important means for national macroeconomic regulation. The financial planners are the financial departments at all levels on behalf of the country; the objects of the financial plan are fiscal distribution activities and related economic variables; the financial plan is based on objective economic laws, national policies and macro-control targets, National Economic and Social Development Plan; The task of the financial plan is to organize, coordinate, and control financial distribution activities through the preparation and execution of financial plans, to better serve the functions of the state.

Financial plan

Right!

The fiscal plan is the state's fiscal revenue and expenditure scale, speed, structure, and balance according to the needs of fulfilling its functions, according to objective economic laws and socio-economic development plans.

1. According to the plan scope, it can be divided into government budget and extra-budgetary fund plan. The government budget is the government's prediction and planning of the size, structure and related economic variables of centralized financial resources.

It is the main part of the fiscal plan, a mandatory plan with legal effect, and reflects the basic fiscal distribution relationship. The extra-budgetary fund plan is the state's prediction and planning of the sources and uses of fiscal funds collected and managed by local governments, departments, and units. A significant portion of extrabudgetary funds have been incorporated into budget management.

The extra-budgetary fund plan is not approved by the state authority, but there are clear regulations for extra-budgetary revenue and expenditure items and standards. Therefore, the extra-budgetary fund plan is a more instructive financial plan.

2. According to the main body of the plan, it can be divided into the central fiscal plan and local fiscal plan. The central financial plan refers to the financial plan prepared by the central government and approved by the highest state authority. It reflects the scope and direction of the central government's activities and occupies a dominant position in the vertical financial planning system. Local financial plans refer to financial plans prepared by local governments at various levels and approved by local authorities at that level. It comprehensively reflects the scope and direction of local government activities at all levels. It is the basic link of the financial planning system.

3 According to the plan period, it can be divided into annual financial plan, medium-term financial plan and long-term financial plan. The annual fiscal plan is the government's annual fiscal budget. It is the estimation or planning of the fiscal revenue and expenditure scale and structure in the fiscal year (calendar or inter-year). The medium-term financial plan refers to a financial plan with a planning period of about five years. It is the embodiment of a medium-term financial development strategy.

A long-term financial plan refers to a fiscal vision plan for about 10 years. Its main contents include: making long-term arrangements and designs for fiscal and tax reform and development trends in accordance with the goals of long-term socio-economic development strategies and long-term fiscal development strategies.

1. The duration of the financial plan. Fiscal plan is an action plan for governments at all levels to manage fiscal activities. It is a plan for fiscal actions in a certain period in the future. For example, China's long-, medium-, and short-term fiscal plans refer to fiscal plans of about 10 years, 5-year fiscal plans, and annual fiscal budgets.

2. Prescriptiveness of financial planning. Financial plans are prepared by governments at all levels and are submitted to the authorities at the same level for review and approval. They are legally binding directives and highly binding. Changes and adjustments are indeed needed in the implementation of the plan, and they must also be carried out in accordance with legal procedures. It can be seen that the fiscal plan has significant commanding characteristics.

3 State subjectivity of fiscal planning. Fiscal planning belongs to the scope of macro planning. It is formulated and implemented by the national or government at all levels of interest. The formulation, implementation, and promotion of the plan are all responsibilities that the government must perform, and have the characteristics of national subjectivity or government behavior. 4 Comprehensiveness of financial planning. The financial plan is a comprehensive reflection and planning of the government's fiscal revenue and expenditure scale and structure during the planning period in the form of value, and has comprehensive characteristics.

(1) Reflecting the government's fiscal distribution status The fiscal plan is to arrange and plan the acquisition of fiscal revenue and the use of fiscal expenditures. Fiscal distribution is a state-based distribution activity. Fiscal distribution activities must implement national policies and policies. The scope, direction and focus of government activities are a comprehensive reflection of government activities in terms of finance.

(2) Organizing fiscal distribution activities The fiscal plan specifies the source and scale of fiscal revenue, as well as the direction and structure of fiscal expenditures. Based on this, the state organizes revenues, arranges expenditures, coordinates fiscal distribution relationships, and controls fiscal distribution activities. The relevant departments, units and enterprises involved in the implementation of the financial plan must also complete the handover tasks in a timely and full amount in accordance with the requirements of the financial plan, use the financial funds reasonably and effectively, and ensure the smooth progress of financial allocation activities.

(3) Controlling the development trend of fiscal distribution Fiscal plans include not only short-term current plans, but also long-term forecasts and development plans, that is, fiscal development strategies. Financial forward rules can propose long-term development strategies and long-term plans for financial distribution through scientific financial forecasting and decision-making. Through the formulation and implementation of fiscal development strategies, the development trend of fiscal distribution can be predicted for a long period of time, and the development trend of fiscal distribution can be controlled through effective means and measures.

(4) Regulating Macroeconomic Operation Under the conditions of a market economy, fiscal allocation is essentially a resource allocation behavior, which has an important impact on macroeconomic operations and social development, and has become an important means of national macroeconomic regulation. Therefore, through the formulation and implementation of fiscal plans, it is possible to implement national economic and industrial policies, adjust the scale and structure of social capital allocation, rationally allocate resources, correct deviations in economic operations, and effectively control the direction of macroeconomic operations and structure.

The procedures for the formulation of a financial plan are the technical procedures and work order for the financial plan. Generally, you should follow these steps:

(1) Data collection and collation This is the starting point for the formulation of the financial plan and is the stage of preparation. At this stage, it is necessary to comprehensively and systematically collect various historical and realistic data on economic development and financial distribution, including data on the state of funds and its regional distribution, through national and economic development through extensive and in-depth investigation and research, and through various means of information transmission. All kinds of information about financial distribution, etc. On the basis of extensive collection of information, it is also necessary to sort and sort the information that has been mastered in order to enhance the systematism, authenticity and applicability of the information, so as to be used in practical operations.

(2) Data analysis and calculation Based on the extensive possession of data, it is necessary to use certain theoretical and technical means to analyze and measure the data to find out the internal relationship and quantitative relationship between the factors that affect fiscal distribution activities. Analyze its development and change trends, and obtain qualitative and quantitative indicators, as the main reference basis for the preparation of financial plans.

(3) Determining the plan indicators After analyzing and calculating the data, according to the results of the analysis and calculation, combined with the objective requirements of realizing government functions and economic and social development, determine the financial plan indicators realistically, including total fiscal revenue and expenditure, and fiscal revenue and expenditure growth Speed, main items of fiscal revenue and expenditure, and indicators of the average state of fiscal revenue and expenditure.

(4) After the main financial allocation indicators of the planning plan have been determined, a draft financial plan can be prepared according to a certain model. After the draft plan is drafted, it will be submitted for approval in accordance with legal procedures. After review and approval, it will become a formally effective and legally effective financial plan, and will be implemented step by step.