In China's Implementation Of Performance Budgeting Theory And Practice Of Thinking

As the key part of the new public management movement, performance budget (PB) benefit a lot to the enhancement of the public expenditure efficiency, settlement of the government finance, management and entrustment crisis. PB has become the world trend of the budget reform and it is also become the long term target of Chinese budget reform.From 1998 china began the reforms of the department budget, two lines of revenue and expenditure, governmental revenue and expenditure classified, treasury consol idated receipts and payments system, government procurement, and monetary and financial project. But basically all the reforms above are control oriented; they are helpful to overcome the problems of finance management chaos and not standardized use of funds. With the deep process of the control oriented reform, people found that only the standardized use of funds can't guarantee the good efficiency of the government expenditure. PB emphasizes the outcome oriented allocation of funds, it will do good to make up the shortcoming of the control oriented reform and improve the effectiveness of government expenditure. So the PB has important meaning to Chinese budget system reform.China has began a lot of performance evaluation and PB pilot reforms, and established some organization of performance evaluation, preliminaryly set up the system of index of evaluation. Some even attempted the applicat ion of the result of the performance evaluation. But from many aspects of the attempts, they are not satisfied because of the system environments, traditional budget management idea, and understanding of the PB. People are confused about how to dea I with the relationship of the performance eva I uat ion and PB,the relationship of PB and department budget,the relationship of control oriented reform and outcome oriented reform, do we have the condition to apply PB, how to combine the performance evaluation and budget,how to apply PB. The confusion of these issues counteract the reform the PB. The development of PB practices needs the theory innovation and gives answers to these issues.This paper will carry out research from theory and practice aspects. Paper will begin from the theory ana I yze, show the theory foundation the PB development and theory logic of the PB reform, and set up the theory instruction of the PB reform. Then combine the theory and practice,analyze each phase of the PB reform, the problems accured, summarize the thought of the reform and the success or failure of the reform to give answers to the issues mentioned above. In the last chapter of the paper we will analyze the case of the Be i j i ng PB reform i nc I ud i ng the situation of the PB reform, the main frame of the PB system of Beijing, the problems faced, and give some suggestions to the ongoing PB reform of Beijing.The main innovation of the paper including:The research of the paper suggests that we should carry out the control oriented budget reform and the outcome oriented budget reform simultaneously. It is pointed out that the control oriented budget is the foundation of the outcome oriented budget. According to the situation in china, we should enhance the reform of the control oriented budget instead of loosening it. Improve the PB reform meanwhile strengthening the control, and let the two budget reforms benefit each other.It is suggested that we should combine the administrative institutions asset management and the PB reform. Although china has not applied the accounting on the accrual basis and manage the budget on all cost, but china can strengthen the administrative institutions asset management and combine it to PB reform to make up the shortcoming of the accounting on the cash basis and improve the allocation of the budget recourses.Paper researches how to I ink up the department budget reform and PB reform, and points out that we should set up the PB reform on the foundation of the department reform. Paper analyzes the relationship of the performance evaluation and PB. It is pointed out that the performance evaluation is only the important part of the PB, but not all of PB. If we ignore the rest part If PB, we may misunderstand PB and let the rest part of PB reform get behind and at last baffle the reform of PB.Paper analyzes the function, shortcoming and chal lenge faced of performance evaluation, points out that if we combine the result of the performance evaluation to the process of budget improprietly, we may face the strong resistance from the government department and the final failure of the PB reform. So we should be very conscious and realistic while combine the performance evaluation to PB. According to the technical situation in china, there is a long way to go.We shou I d make c I ear the functions of the government i n the first place while applying PB. By doing so, we can set clearly the target of the government. The clear target of the government is the key foundation to set up the performance evaluation index and the allocation of the budget resource. We should carry out the public administration system reform. It is pointed out that we should link up the PB and the government function transform. Government should set up the strategic target and the continuous budgeting, and let them be the important part of the PB. Paper researches the segments and taches of the PB and points out how to apply PB step by step.