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Reform Of Budget Performance Management At Subnational Level In China

Posted on:2016-12-25Degree:DoctorType:Dissertation
Country:ChinaCandidate:X M BaoFull Text:PDF
GTID:1109330464450174Subject:Public Finance
Abstract/Summary:PDF Full Text Request
Currently, China has entered a new stage of development; its administrative system reforms are at crucial stage and have waded into "deep waters". "The Decision on Major Issues Concerning Comprehensively Deepening Reforms" was adopted at the close of the Third Plenary Session of the 18th CPC Central Committee on last November. It proposed that the reform of the economic system is the focus of all the efforts to deepen the all-round reform, handling the relationship between the government and the market well is the key to resources distribution. Solving the imperfect market system, reducing government intervention and making regulation in place to maximize the effectiveness and optimize the efficiency of resource allocation. Finance is the fundamental and important pillar of national governance. The reform of fiscal and taxation system is a core part of Comprehensively Deepening Reforms, a scientific fiscal and taxation system optimizes allocation of resources, promotes fairness and provides institutional guarantee for the country’s long-term stability. Effectiveness and efficiency of fiscal activities is one of the foremost problem needs to be solved. How to deepen reform of budget performance management to improve fiscal performance is an important and arduous historical task we are facing.China has special national conditions that economic development level and fiscal system are various in each area. Local government should be motivated and its special conditions must be considered to deepen reform of budget performance management. In recent years, there have been some reform practices of budget performance management across different levels of sub-national government. Organizational structure and institutional guarantee have been improved, experiences gained in expenditure performance evaluation and application of evaluation result. It achieved positive effect based on pre-reforms such as national treasury centralized payment system. But along with the deepening of reform, and the changing economic situation, contradiction between fiscal. revenue and expenditure increasingly obvious, evaluation on expenditures that focused on payment compliance couldn’t completely describe the performance of fiscal activities, also couldn’t guarantee maximum effectiveness and optimized efficiency of resource allocation through fiscal activities. In addition, reform of budget performance management always promoted by local fiscal sector, who limited to institutional environment, facing plenty of difficulties in implementation of reforms and application of results. Considering the reform of budget performance management is a long, arduous and complex systematic engineering, study on reform of budget performance management at subnational level will be helpful to establish a modern fiscal system.The study on the reform of budget performance management is from both theoretical and empirical aspects. Theoretical analysis is based on public choice theory, institutional economics and principal agent theory. Sum up the motivation, direction, methods, highlights and results of the local budgeting and performance management reform, as well as the deficiencies and weakness of reform, and analyze the existing issues. On the other hand, on the basis of participation in "A" county’s whole process budget performance management reform practice, the paper selects the county reform practice as a case study:elaborating the conditions and fiscal operational status of "A" county, cites its organizational structure and system guarantee of the reform, summarize the effects, highlights and inadequacies through specific project practice, and analyzes the causes of these problems and how to improve it. Meanwhile, the paper taking US and other OECD countries’experiences as references, and finally raise the basic ideas of budget performance management reform at subnational level with suggestions.The main innovation of the paper includes:1. The paper has expanded and extended the meaning of budget performance management. It is proposed that local budget performance management should not only cover budget expenditure performance, but also revenue performance. The transfer payment system, fiscal institutions, revenue and expenditure of state-owned capital management budget, revenue and expenditure of government fund budget, revenue and expenditure of social security fund budget, revenue and expenditure of debt fund should be all included in the budget performance management.2. The paper has provided some specific and feasible ideas for the reform of budget performance management. Based on reform practice experience, considering the recent "alone in-depth" like advance of performance evaluation reform process, the study jump out the constraints of budget management research area to a higher and broader vision, and finally giving some countermeasures and suggestions, such as strategic conception at macro-level, fiscal means at meso-level, and operational mechanism at micro-level.
Keywords/Search Tags:Budget Performance Management, Performance Budgeting, Fiscal Management at Subnational Level, Fiscal Reform
PDF Full Text Request
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