Budget Hypothesis,Budget Application and Misunderstandings of Government Financing Outlook——Analysis Based on the Formation Process of Provincial Budget

Public budget application complies with three different hypotheses theoretically,including present service budget,fixed maximum budget,and unlimited budget.Each of the three contains a different financing purpose.Taking the formation of provincial budget as an example,the author analyzes the budget application in China from formal and informal levels respectively,and believes that Chinese formation process of provincial budget follows the distort budget hypothesis.Four misunderstandings of government financing outlook are discovered.