Study Of Local Public Expenditure Management Issues

Local public expenditure management is an important area of public financial management. Over the past two decades, especially over the past decade, The theory of New Public Management has emerged, the wave of "reinventing government" has surged throughout the world, both of them influenced the paradigm of public finance substantially. Therefore, public finance shifted its focus from "power" to "management"; public financial management shifted its focus from "revenue" to "expenditure". In recent years, public finance research and reform in China also shifted their focuses from "central government" to "local government ". Under these circumstances, the author thinks it is important in theory and practice to study local public expenditure management.There are seven chapters in this dissertation , they are as the following:Chapter One is introduction. This chapter begins with the theoretic and practical background of current research on public expenditure management, analyzing the reasons for the research, as well as the significance of the study on the local public expenditure management. The author summarizes the concept and the research framework of public expenditure management on the basis of Chinese and western relevant literature. "Public expenditure" in this study is defined narrowly as expenditure that government arranges when it provides public services for the market. The author organizes the structure of this dissertation according to the current situation of local public expenditure management in China. In addition, the chapter introduces the methods adopted, as well as the advantages and disadvantages of this dissertation.Chapter Two is multiple-level public finance and local public expenditure management. The chapter seeks to point out the necessity of local public expenditure management. The chapter explores the main characteristics of fiscal federalism, and agrees on the opinion that contemporary multiple-level public finance in China has the characteristics of fiscal federalism. However, there isn't a perfect "voting-with-the-feet" mechanism in China.With the help of "Tiebout model "and "the theory of polycentricity", the author draws a conclusion that the key to the restriction of local public expenditure in China is that local government is the biggest producer, but it isn't the best arranger at the sametime. Then, it is significant to make clear the arranger role of local government.Chapter Three is the methods of analysis and evaluation of local public expenditure management. This chapter tries to provide some tools for local public expenditure management to diagnose problems. "Where you stand depends on where you sit", different methods of analysis and evaluation maybe lead to different conclusions of public expenditure management. The analysis framework of local public expenditure management includes six dimensions: goal analysis, composition analysis, process analysis, institution analysis, cost analysis, and level analysis. Evaluation is to confirm the outcomes and effects of completed programs. It is distinct from supervision and forecast. The standards for evaluating public expenditure are effectiveness, efficiency, adequacy, equity, responsiveness, and appropriateness. Moreover, public program evaluation and performance measurement are the most important approaches to evaluating public expenditure.Chapter Four is public budgeting management. Although the pattern of public budgeting management is a concept related to the approach to public budget making, they are distinct in many aspects. It is the pattern of public budgeting management that the chapter examines. There are five patterns of public budgeting management introduced: line-item budgeting, planning-programming-budgeting, management by objectives, zero-based budgeting, and performance budgeting. Among them, the author concentrates on performance budgeting management. Since the 1990s, performancebudgeting has brought forth new ideas and had four trends--results-oriented budgetingmanagement, highly flexible budgeting...