Chapter 1 Introduction

1. General concept of finance

Finance is a government economic activity that takes the country as the main body and relies on political rights to participate in the distribution of social products to meet the needs of the public. Through government economic activities, the process of social reproduction is relatively balanced and coordinated, and the internal functions of optimizing the allocation of social resources, fair distribution of social income and the stability and development of the national economy are realized.

2. The function of finance

Safeguarding the functions of the state: safeguarding the government as the main body of state governance, maintaining social order and safeguarding national security.

Resource allocation function: the distribution ratio of limited social resources in different economic fields, different regions, different industries, different departments and different industries.

Income distribution function: realize the fair distribution of income in the whole society through financial distribution activities, and keep the income gap within the acceptable range of society.

Functions of stabilizing the economy: (Economic stability: full employment, price stability, balance of payments)

Function of supervision and management: the function and responsibility of finance to supervise and control the movement of financial funds in a certain way and to evaluate and analyze the efficiency of the use of financial funds.

Chapter II Research Methods of Finance

2. Empirical research methods

Acquisition of empirical data: literature retrieval, field investigation, controllable experiment

Application of empirical data: statistical analysis, econometric analysis

3. Standardize research methods

Normative Research and Welfare Economics

Pareto Optimal Criteria and the First Theorem of Welfare Economics

Measurement of Social Welfare and the Second Theorem of Welfare Economics

Chapter III Public Products and Externality

1. Product Overview p36

Public products: all kinds of material products and services provided by the government to the society, which are provided by the government to meet the undifferentiated needs of the whole society.

Private products: refers to products mainly provided by the market to meet the individual needs of social producers and workers.

Mixed products: non-competitive and non-exclusive incomplete products. There are club products and public resources products.

2. The characteristics of public * * * products:

1) Non-exclusiveness: When consumers consume a product or service, they cannot exclude other consumers from consuming the product or service at the same time.

2) Non-competitiveness: the marginal cost of adding a consumer within a certain range is zero, and the new consumer does not reduce the consumption level of the original consumer for the public product.

The public products are completely non-competitive and non-exclusive at the same time.

3. Balanced supply of public products

Local Equilibrium of Public Goods Supply-Bowen Model and lindahl equilibrium Model

The general equilibrium condition of the supply of public products: the sum of marginal substitution rate of each social member is equal to the marginal rate of transformation between products.

4. Externality

1) Externality refers to the situation that one person or a group of people's actions and decisions damage or benefit another person or a group of people. Economic externalities are the non-market effects of economic activities of economic subjects (including manufacturers or individuals) on others and society. That is, when social members (including organizations and individuals) engage in economic activities, their costs and consequences are not entirely borne by the actor. Divided into positive externalities and negative externalities. Positive externality means that the activities of an economic agent benefit others or society, and the beneficiaries don't have to pay the price. Negative externality means that the activities of an economic agent damage others or society, but the person who caused negative externality didn't bear the cost.

2) Private countermeasures of externalities

Coase Theorem: It is believed that under certain conditions, economic externalities or inefficiencies can be corrected through negotiations between the parties, so as to maximize social benefits. Coase himself has never written the theorem in words, and if others try to write Coase theorem in words, they can't avoid expressing deviation. As for Coase Theorem, it is popular to say that as long as the property right is clear and the transaction cost is zero or very small, then no matter who is given the property right at the beginning, the final result of market equilibrium is efficient and Pareto optimality of resource allocation is realized.

enterprise merger .

3) external public * * * countermeasures,

Pigovian tax

charges for disposing pollutants

licence

government restriction

Chapter IV Overview of Financial Expenditure

I. Classification of fiscal expenditure P62

(a) according to the classification of government revenue and expenditure subjects

Including capital construction, circulating funds, funds for tapping potential, innovation and transformation, three expenses for science and technology, geological exploration expenses, expenses for supporting rural production, expenses for cultural, educational, scientific and health undertakings, pension and social relief expenses, defense expenses, administrative expenses, etc.

(2) Classification according to state functions

Expenditure for economic construction, defense expenditure, administrative expenses, social and cultural expenses and other expenses can be divided into five categories.

(three) according to the direct compensatory classification of fiscal expenditure.

Include purchase expenditure and transfer expenditure.

1, purchase expenditure: refers to the expenses incurred by the government in purchasing goods and services in the market, including the expenses for purchasing goods and services needed for daily government affairs and for national investment.

2. transfer expenditure: refers to the gratuitous and unilateral transfer of government funds, including subsidy expenditure, donation expenditure and debt interest expenditure.

3. Analysis of two kinds of expenditure: purchase expenditure has a direct impact on social production and employment, but only an indirect impact on income distribution; Transfer expenditure has a direct impact on income distribution, while its impact on production and employment is indirect.

II. Cost-benefit analysis method of fiscal expenditure P67

(A) cost-benefit analysis method

In view of the project objectives set by the government, this paper puts forward several construction schemes, lists all the expected costs and benefits of each scheme in detail, and converts them into monetary units. Through comparative analysis, it is determined whether the project or scheme is feasible.

Steps: ① Determine the goals to be achieved by government projects; ② List costs and benefits; ③ Measure the cost and benefit; ④ Calculate the discount cost and benefit; ⑤ Select decision criteria; ⑥ Selected projects;

(B) the lowest cost selection method

The monetary unit cannot be used to measure the social benefits of alternative financial expenditure items, but only the tangible cost of each alternative item is calculated, and the lowest cost is the criterion for selecting the best. Mainly used in military, political, cultural, health and other financial expenditures.

(3) the public * * * pricing method

The relevant administrative departments of the government formulate the prices and charging standards for public goods through certain procedures and rules. ① Marginal cost pricing method; ② Average cost pricing method; ③ Two-part pricing method; ④ Conforming to the pricing method; ⑤ Protection price

Iii. Law of Public Service Charge p7 1

1) The law of charging for public services is a set of laws to improve the efficiency of fiscal expenditure by formulating and adjusting the price or charging standard of public services.

2) Scope of use "public services" provided by the government for posts and telecommunications, highways, tap water, environmental sanitation, national housing, parks, education, health care and other departments can be managed by pricing and charging.

3) Pricing type

(1) Free or low price: it is applicable to public goods that are required to be widely implemented nationwide, and public services that the public cannot consciously use. Such as: compulsory education and compulsory immunization.

(2) Parity: it is applicable to public goods that are neither encouraged nor restricted, and can compensate people, money and materials consumed by the government in providing public services to a certain extent.

Such as parks, posts and telecommunications, medical care and highways.

③ High price: the applicable public goods must be restricted, and it can also provide financial revenue for the country. Such as: some state-owned rare resources, cigarettes.

Chapter V purchase expenditure

1. Administrative expenditure refers to the financial expenditure required by state power organs at all levels, administrative organs and foreign affairs agencies to exercise their power and manage joint sales. National defense expenditure refers to all kinds of expenses used by the state to meet the security needs of all members of society for anti-national defense construction of land, sea and air services.

2. The theoretical basis of government intervention in education includes: government intervention in education can greatly promote scientific and technological progress; The clearing of educational services has positive externalities; Government intervention in education can avoid the causal cycle accumulation of income gap and educational injustice; Government intervention in parenting can avoid the limitations of imperfect and underdeveloped education capital market.

3. The characteristics of public investment are as follows: public investment aims at achieving all-round economic and social development and a virtuous circle; The fields invested by the public are basic fields and large-scale projects related to the national economy and people's livelihood; Public investment is an important means of national macro-control. The criteria for public investment include capital output criteria, capital-labor ratio maximization criteria, and labor creation criteria.

4. Basic industries refer to specific economic sectors that can provide guarantees and conditions for the normal operation and sustainable development of the national economy. The products and services provided by basic industries are incomplete non-competitive and non-exclusive, and have obvious positive externalities. The basic industry has strong sensitivity and high sensitivity coefficient; Investment in basic industries is a kind of "social first capital".

5. The theoretical basis of government intervention in agricultural production is the dual risks of agricultural product supply and the dual constraints of agricultural product demand. The main forms of agricultural development expenditure include agricultural product market policy, agricultural direct subsidy policy, government agricultural public service, rural infrastructure construction and so on.

Chapter VI transfer expenditure

1, social security system

1) Meaning: A system in which the state provides basic living security for all citizens in order to help them overcome the risks and uncertainties they face.

2) Basic models: social insurance model, national welfare model and personal savings model.

3) Economic effects: savings effect, wealth substitution effect, retirement effect, legacy effect, distribution effect, labor supply and demand effect.

2. Financial subsidies

1) Meaning: A kind of government gratuitous expenditure that affects the relative price structure, thus changing the resource allocation structure, supply structure and demand structure.

2) Classification of financial subsidies

A) price subsidies and interest subsidies;

B) Subsidies for enterprises and residents;

C) prohibited subsidies, actionable subsidies and non-actionable subsidies.

3) the actual economic effect of financial subsidies

A) stabilize the price level and ensure the living standard of residents.

B) internalize externalities and improve the efficiency of resource allocation.

C) Promote industrial restructuring and enhance industrial competitiveness;

Chapter VII Introduction to Fiscal Revenue

1. The scale of fiscal revenue can be described by two indicators: absolute number and relative number. Among them, the indicators to measure the relative amount of fiscal revenue mainly include the growth rate of fiscal revenue, the proportion of fiscal revenue to GDP, the elasticity of fiscal revenue and the marginal tendency of fiscal revenue.

2. According to the form of fiscal revenue, it can be divided into three forms: tax revenue, non-tax revenue and debt revenue. The source of fiscal revenue can be investigated from three angles: according to the social and economic components of fiscal revenue sources, it is divided into income from different economic components; According to the social product value of the source of fiscal revenue, it is divided into income from different social product values; According to the source of fiscal revenue, it is divided into income from different industrial sectors of the national economy.

3. Non-tax revenue refers to all government revenue except tax revenue. According to China's government revenue and expenditure system, non-tax revenue mainly includes three parts: state-owned assets ((capital) income, government fee income and government fund income. Among them, the income of state-owned assets (capital) refers to the financial income obtained by the government by virtue of property power, including the income of state-owned capital operation and the income of state-owned resources and non-operating state-owned assets; Government fee income includes administrative fees, special fees and confiscation income.

Chapter VIII Principles of Taxation

1. The formal characteristics of taxation: the compulsion of taxation; The unpaid nature of taxation; The fixity of taxation.

2. Elements of tax system

Taxpayer: The units and individuals with direct inherent tax payment obligations stipulated in the tax law, and it is the subject of tax payment.

Tax object: also known as tax object, it refers to the object of taxation stipulated in the tax law, which is the basis of taxation, that is, the object of taxation.

Tax rate: the ratio between the tax amount and the number of taxable objects.

3. Classification of taxes

Circulation tax: also known as commodity tax, refers to the tax that takes the turnover of commodity exchange or provision of labor services as the tax object.

Income tax: also known as income tax, refers to the tax category that takes the amount of income (or income) as the tax object.

Resource taxation: it is a kind of tax that takes natural resources as the object of taxation. It is to properly adjust the differential income obtained by units and individuals engaged in natural resource development in order to promote the rational development and use of resources.

Property taxation: refers to the tax category that takes the property owned or controlled by taxpayers as the object of taxation.

Behavioral taxation: refers to the tax category that takes a specific behavior of taxpayers as the tax object.

4. The tax system is a tax legal norm formulated by the state to implement tax distribution activities and deal with tax distribution relations. The total income system consists of multiple taxes, and the main factor that constitutes tax types is the tax system element. Usually, the elements of the tax system include two levels, namely, the basic elements and subsidiary elements of the tax system. Among them, the basic elements of tax system include taxpayer, tax object and tax; the subsidiary elements of tax system include tax payment link, tax payment period, tax payment place and tax preference.

5. Taxes can be classified according to different standards. Taxes can be classified into turnover tax, income tax, property tax, resource tax and behavior tax according to the nature of tax objects. According to the difficulty of tax burden transfer, taxes can be divided into direct taxes and indirect taxes according to the form of tax basis, and taxes can be divided into specific taxes and ad valorem taxes. According to the relationship between tax and price, it is divided into in-price tax and out-of-price tax. According to the provisions of the financial management system, taxes can be divided into central taxes, local food central and local * * * enjoy taxes.

6. The tax principle is the basic criterion and code of conduct that the country follows when designing the tax system and formulating the tax policy, and it is the evaluation of the tax system. And the theoretical standards for assessing the tax administration. Among them, the principle of tax finance refers to the establishment and transformation of a country's tax system, which must be conducive to ensuring the needs of the country's fiscal revenue, including the principle of sufficiency, the principle of moderation and the principle of flexibility. The principle of tax equity requires the realization of burden equity, including horizontal equity and vertical equity. The principle of tax efficiency includes two aspects: administrative efficiency and economic efficiency. Among them, tax administrative efficiency requires to obtain the largest tax revenue with the lowest possible operating cost, while tax economic efficiency requires to minimize the excess burden.

7. Tax structure refers to the combination of different tax systems and different taxes in a country's tax system. Tax behavior reflects the overall layout and internal structure of a country's tax system, and reflects the status and role of different tax systems and different species in the whole tax system. The choice of tax structure is mainly subject to the level of economic development, tax policy objectives and the ability of tax authorities to collect and manage.

Chapter X Introduction to Tax System

1. Turnover tax is a tax with the turnover of goods or services as the tax object. According to the difference of tax objects, turnover tax can be divided into goods tax and service tax; According to the difference of tax basis, turnover tax can be divided into turnover tax and value-added tax; According to taxation, turnover tax can be divided into multi-link turnover tax and single-link turnover tax; According to the difference of tax burden, turnover tax can be divided into transfer tax and indirect turnover tax. Turnover tax on goods or services usually causes income effect and substitution effect. At present, the turnover tax in China is mainly value-added tax and consumption tax.

County 2. Income tax refers to the tax that takes the taxpayer's pure income (net income or net income) as the taxation object. The main income taxes in the world are enterprise (company) income tax and personal income tax. The collection of income tax has an important impact on personal behavior and enterprises. China's current enterprise income tax was implemented in 2008. The current personal income tax is classified income tax for 1 1 tax items, and the reform goal is mixed income tax.

3. Property tax is an ancient tax, which refers to the tax that takes the property owned or controlled by taxpayers as the tax object. Property tax is a kind of goods tax, which is levied on land and buildings; Some scholars believe that property tax is a kind of capital tax and a general tax levied on capital; Some scholars believe that property tax is a kind of use fee, which is the price of local public services.

4. Resource tax refers to the tax that takes the absolute income and differential income of resources as the taxation object. Resource tax can be divided into general resource tax and differential resource tax according to the unexpected levy. Property taxation is a kind of tax that takes the property owned or controlled by taxpayers as the object of taxation. Such as: fixed assets investment direction adjustment tax, stamp duty, urban maintenance and construction tax, securities transaction tax, slaughter tax, banquet tax, etc.

Chapter XI Public Debt

1. the meaning of public debt P 189

Public bonds are debts borrowed by the government from domestic and foreign investors in the form of national credit to raise financial funds. It is an important form of government revenue.

2. The function of public debt

(1) make up the fiscal deficit

(2) Raising construction funds

fiscal policy

(3) macroeconomic regulation and control of deposit reserve

Monetary policy rediscount

open market operation

3. Analysis of indicators to measure the public debt burden P202

(1) public debt burden rate

That is, the balance of government debt accounts for the proportion of GDP in that year, which reflects the affordability of a country's economic aggregate to outstanding debts.

(2) Dependence on public debt

The dependence on public debt refers to the ratio of the issuance of government bonds to fiscal expenditure in that year, which reflects the dependence of government fiscal expenditure on debt income.

(3) Debt service ratio of public debt

The debt service ratio of public debt refers to the proportion of debt interest payment in the current year to the fiscal revenue in the current year.

Chapter XIII Government Budget

1. The concept of national budget

The national budget refers to the national annual financial revenue and expenditure plan that has been prepared and approved through legal procedures. It is a document with legal status in the form of income and expenditure list, and it is a tool for national finance to realize planned management.

2. Single budget and double budget

(1) simple budget: it is a traditional budget preparation, which unifies all financial revenues and expenditures in a total budget in a budget year, instead of separately preparing budgets according to the nature of various financial revenues and expenditures.

(2) Double-entry budget: it is to change all financial revenues and expenditures into two or more budgets according to the economic nature. It is usually divided into two parts: regular budget and capital budget.

3. Zero-based budget and incremental budget

(1) Zero-based budgeting means that when preparing a budget, the original revenues and expenditures should be re-examined regardless of the implementation of previous years.

(2) Incremental budget refers to the determination of fiscal revenue and expenditure indicators in the budget year, which is based on the number of fiscal revenue and expenditure in the previous year and adjusted and determined in consideration of the national economic development in the new year.

4. The concept of national budget management system

The national budget management system is a fundamental system that stipulates the budget revenue and expenditure scope and budget management authority between the central and local governments, as well as local governments at all levels.

Chapter 15 Fiscal Policy and Macro-control

1. The meaning of fiscal policy P272

Fiscal policy can be understood as the fiscal policies, strategies and measures formulated by a government to maintain the stability and development of the national economy and implemented through various fiscal means.

2. Types of fiscal policy P275

(A) according to the role of fiscal policy in regulating the economic cycle.

(1) Automatic and stable fiscal policy. It refers to a policy that can automatically stabilize according to economic fluctuations.

(2) The fiscal policy of relative choice. It refers to the policy that needs the government to change the existing policies and systems according to the economic operation and implement them.

(B) According to the functional classification of fiscal policy in regulating the total national economy.

(1) expansionary fiscal policy. Refers to the fiscal policy that ultimately stimulates and increases the total social demand.

(2) Tight fiscal policy. Refers to the fiscal policy that ultimately reduces and inhibits the total social demand.

(3) Neutral fiscal policy. It refers to a fiscal policy that neither expands nor reduces the total social demand.

3. Monetary policy P28 1

Fiscal policy refers to the basic policy and corresponding measures for adjusting the money supply formulated by a government to achieve certain macroeconomic goals.

4. Three traditional means:

(1) statutory deposit reserve ratio. It means that commercial banks and other financial institutions deposit part of their deposits with the central bank according to the prescribed ratio, and they are not allowed to use them themselves. The ratio that should be deposited is called the statutory deposit reserve ratio.

(2) rediscount rate. It refers to the interest rate used by the central bank of commercial banks for rediscounting.

(3) Open market business. This is a way for the central bank to adjust by buying or selling securities in the financial market.

5. The necessity of coordination between fiscal policy and monetary policy:

The policy objectives of the two adjustments are different.

The regulating functions of the two are different.

The transmission mechanism of the two is different.

The time lag of the two adjustments is different.

6. The mode of coordination between fiscal policy and monetary policy:

The expansionary fiscal policy cooperates with the expansion of the new fiscal policy, that is, the "double relaxation" policy. It can stimulate economic growth, but it will bring the risk of inflation.

Tight fiscal policy combined with tight monetary policy, that is, "double tight" policy, can effectively curb inflation, but it may bring the consequences of economic stagnation.

The combination of tight fiscal policy and expansionary monetary policy, that is, the policy of "tight fiscal policy and loose monetary policy", can control inflation while maintaining moderate economic growth.

Coordination between expansionary fiscal policy and tight monetary policy. That is, the policy of "tightening fiscal policy" can avoid inflation as much as possible while maintaining moderate economic growth, but it will accumulate a large number of fiscal deficits if it is used for a long time.