Performance Budgeting Of Public Expenditures Study

In the development process of economics and management under the public sector, the efficiency of public expenditure not only has been an important theoretical study, but also the mainlly logical line which to follow in the practice of bugeting system reform around the world. With this theme, the government's budget is also making the progressive development:from a Single-type Budget to a Multiple-type budget, from the Incremental Budget to Zero-base Budget, from the Project Budget to Performance Budgeting. While Performance Budgeting is in full swing in some foreign countries, and is also making experiment in some parts of our country, but by synthesizing domestic and foreign performance budgeting theory and practice, we found that when people are exploring how to improve the performance of the government budget, its starting point and purpose of the budget have focused on the supply side (ie the Government) and pay no attention on budgetary demand side (the public).Even if the focus on the supply side of the Governmen budget is also from the whole, there is no detailed aspects to a government departments. In this way, it will led the government in the budget preparation process to the people whether they are the object as a budget expenditure or the main body to make budget pay no necessary attention., which could lead to budget preparation can not be achieved "People-oriented" and "Scientific Development". Furthermore, when the governmen exercise its "Serve the People" as the bounden duty, they were ignored "the people" of the preferences and needs, so the quality and effectiveness of its services will also be a significant discount. Based on this, we have proposed a "People-performance Budgeting" concept, stressing that "People-oriented Management" and "Performance Budget" as an organic combination of that People-oriented+Responsibility-oriented +Results-oriented budget.With the concept of People-performance Budgeting in the human scope of this definition, we have a general analysis to this People-performance Budgeting management theory including it's objectives, principle, characteristics, influence factors, and evaluation system. In the analysis to the objectives of People-performance Budgeting, we place special emphasis on "People-oriented", "Performance-oriented" and "Democratization" in three dimensions, strengthening the "People-oriented" as the "customer-oriented" in the budget more in line with the concept of "represent the fundamental interests of the overwhelming majority of the people". All these are the key differences from other performance budgeting. In the analysis to the principles of People-performance Budgeting, we particularly stress the expenditure principle of "Public Demand-oriented", principle of "People-oriented", principle of performance, and principles of designing performance indicators. These principles can also be further refined, such as public "Demand-oriented" principles including the public priority, public choice and public satisfaction with the three principles of "People-oriented" of public expenditure also including an openness, transparence and democracy, and so on. In the analysis to the characteristics of budget management, we give great importance to public demand, cost effectiveness and evaluation, incentive and constraint-oriented and more transparent legal system. While the above theory of the "People-oriented" of the performance of the budget is not very in-depth, but it basically covers the main theory contents of People-performance Budgeting, and lay a theoretical foundation for the future study.With the analysis on the theory of People-performance Budgeting, we finally give a framework for the design of People-performance Budgeting management.In view of the Performance Budgeting framework has not yet been established in China, so the People-performance Budgeting framework we created is also a broad-brush outline, only an attempt making the people-oriented idea into Performance Budgeting. This group of People-performance Budgeting framework includes six parts, namely, the content of People-performance Budgeting, the processes and tools, as well as safeguard mechanism of People-performance Budgeting, the execution and evaluation of People-performance Budgeting, as well as accountability and incentives of People-performance Budgeting. In the designing of the management content of People-performance Budgeting, we have established a system including demand mangement system, people-performance management system of public sector, people-performance evaluation system of public expenditure, budget making and auditing system of People-performance Budgeting. This "five in one" theoretical system is based on foreign-related theory and practice of performance budgeting in conjunction with the pilot of China's current situation and the requirements of the Ministry of Finance on the performance of the budget. In the designing of the implementation model of the People-performance Budgeting, we put forward the reform ideas with three steps taking into account the complexity and cahllenge of the People-performance Budgeting. First, we make performance evaluation for some major projects budget expenditure. Second, we make People-performance Budgeting for a particular sector with the first step's base. Finally, with the experiences and lessons learned from the first two steps, we make the People-performance Budgeting of the whole governments. In the designing of accountability and incentives of People-performance Budgeting, we explained the openness of performance accountability and government financial information, as well as the designing of the government accountability system including the delineation of the responsibilities of organizations and individuals to establish and improve the accountability system, the legal system of the accountability and the support system.