ABSTRACT
Since the founding of the People’s Republic of China in 1949, China’s budgeting system has experienced three major stages that reflect the evolution of public budgeting in China. Before 1978,1 China’s budgeting system was plan-dominated. Under a planned economy, public budgeting was insignificant since budgetary revenues were allocated by plans responding to significant public polices. From 1978 to 1999, China’s budgeting system was in transition. During this period, although the traditional budgeting system was de-integrated, a new and effective budgeting system
was not developed because fiscal reforms during this period were centered on the revenue side (Wang, 2001).
