A Study On Financial Performance From The Perspective Of Assets And Liabilities

The Government is the machine of a state, the normal operation of a government is the basic premise of a rich, strong and prosperous nation. The finance is the blood of the country’s operation and the government’s basic work, which is very important. The meaning of a country’s finance covers the fund of different level government and the economic activities in which it generates. Such activities are related to all aspects of the entire national politics and economy. And the Government Finance is the important macroeconomic control facilities to maintain the social stability. The study of the financial performance is closely related to the macroeconomic operation. However, the finance is considered as same as the fiscal funds for a long time, which means the evaluation of the financial performance is the same as the evaluation of financial revenue and the expenditure. It justpays more attention to the income and expenditure. Obviously, which is a concept of ’financing flow’.It needs to revise the point from the conceptual framework. Governments’ finance not only contains the capital flow, but also the economic activities generated by the capital flow. Base on the famous theory of the Financial Crisis of O’Connor, country plays a powerful role in Social Production. O’Connor is considered as a Neomarxism. The Statement Intervention has been paid more attention by the whole world after the economic crisis in the thirty’s of last century, in which country has been become a part of superstructure to be above the private sector. And O’Conner believes that the state should be a participant in social production, not just as a consumer. In the field of public goods that some private sectors cannot or do not want to provide, the state is required as a general producer for the production of these public goods and services.In the theory of Modern Public Finance, the Government also needs to provide public goods. The government provides the public goods and services needed by citizens through the allocation of financial funds. Unlike the private sector, the government provides a "return" that is not immediate, but requires a long period of time. Therefore it is not comprehensive to measure the economic effects just from the financial income and expenditure.At the same time, in 2007 the United States broke out the sub loan crisis, and then triggered a new round of global financial crisis.In particular, Dubai and Greece’s government debt crisis makes the country’s financial paralysis, once caught in a panic. Countries around the world are beginning to pay attention to the government debt problem. From 2011, Audit administration in our country began to launch two large-scale diagnostic audits on the local government debt, the results of the audit caused social concerns and hot debates.Since then,all circles of societystarted to pay attention to the government’s "family property", and whetherit could repay the heavy debt have been stressed. Meanwhile there are three academic teams began to prepare the national balance sheet, trying to solve the problem. Obviously, the assets and liabilities of the public department are the results of the operation of the financial funds. In other words, the economic effect of the funds is acted by the government’s assets and liabilities which can be considered as the government’s fiscal stock. In this case, the measurement and evaluation of financial performance is not only from the point of view of revenue and expenditure, but also should be evaluated from the perspective of the stock of assets and liabilities.The main content of this paper is to evaluate the performance of government finance from the perspective of assets and liabilities, namely in terms of stock measure of fiscal performance.The main idea of the research is to sort out the transformation from the concept of Revenue and expenditure flow to the concept of stock, and then began to define and analyze the fiscal stock of assets and liabilities which are needed in the evaluation of financialperformance, in that case compiling the government balance sheet as the tool in following study. Because of the hard to get the value of the Non-operating assets and the limited solvency in repaying debts, the balance sheet of the paper is emphasized in the liquidity of the government’s assets and liabilities.Bases on which the paper studies the financial performance. There are two parts in the study, which are the effect evaluation and efficiency evaluation. The balance sheet method would be used in the effect evaluation, analyzing the performance of the sheet which is constituted by the data of 10 years from 2005 to 2014 of the central government and the local governments, analyzing trend of the fiscal stock from the horizontal and vertical aspects and some rates study. The input-output method would be used in the efficiency evaluation, choosing the fiscal deposits, operating state-owned assets and liabilities as the input items, meanwhile choosing theurban and rural residents RMB savings deposit balance at the end of the year, GDP and residents per capita disposable income as output items. And then the paper uses the B2 C model of the DEA to analyze the efficiency of the financial of 30 provinces and municipalities directly under the central government, and deeply studies the reason of low efficiency in Shanghai City and provides the ways to improve the efficiency level, which gets an unusual performance comparing with its normal economic condition.Finally, this paper puts forward some suggestions, for reference only.The innovation of the study lies in the selection of topics and methods. Firstly, the evaluation of financial performance from the perspective of the fiscal stock is an innovation. Secondly, the enterprise financial management ideas and methods are applied to the government’s public sector in the course of the study can be more comprehensive to measure the government’s financial work.This study is conducive to improve the efficiency of government departments, and improve the financial management system of our country, and responds to the words that ‘Let the market play a decisive role in the allocation of resources’, which provided in the Third Plenary Session ofthe Eighteenth National Congress of the CPC.There is no denying that the research in this paper still has many shortcomings.First of all, becausethe data is difficult to obtain, this paper cannot make a horizontal comparison in the stock of our central government’s financial performance with other foreign countries, so a relatively reasonable reference index could not be obtained.Secondly, this article is aimed at the performance of the fiscal stock, and doesn’t make a combination with the flow funds. The study would be more comprehensive if such combination can be made.These issues will become the focus and direction of the study in the future.