The Research On Budget Performance Management's Reform In China

Budget performance management is based on the fiscal project expenditure performance's evaluation which has already been carried the pilot in China, developed with introducing international experience of performance budgeting, and integrated the performance concept and method into the budget process, where achieved a good combination of budget management and performance management, thus producing a new budget management mode.From the view of original reality with budget performance management, China's fiscal and budget management has been shifting to the effectiveness of expenditure from strengthening standardization of expenditure management, along with the deepening of financial development and the reform of budget management. Meanwhile, the exposed deep-problems in the current budget management and the actual situation of growing expenditure day by day, which is also an urgent need to introduce a new management tools-budget performance management to be addressed in order to adapt to the financial situation and the requirements of the budget management. It has an important significance to further improve the public finance system and enhance the efficiency of fiscal expenditure. Since the implementation of performance budgeting requires the specification of the institutional environment and a range of constraints, such as a sound legal system, full autonomy department, the accrual basis, and a wide range of cultural backgrounds, etc. Therefore, the proposed budget performance management in China at present stage, which is more realistic option in line with China's national conditions and financial management practice.From the view of theoretical basis of the budget performance management, it includes the principal-agent theory, the public goods theory, the new public management theory and other financial theories. These theories respectively from the different point such as incentive and constraint mechanism based on owners and users of financial which under the principal-agent relationship, the effective supply of public goods, market-oriented and competitive mechanisms of public administration, as well as an effective solution to the excessive growth of expenditure, to better explain the connection and support with performance management. From the view of international experience on budget performance management, we can see that the western countries have generally raised the reform of government management aimed to improve government's performance since1970s, in order to resolve the financial crisis, trust crisis and management crisis, thus promoted the development of performance budgeting. Among them, Britain and U.S.A are those countries which early implemented performance budgeting; Australia, New Zealand are more thoroughly in terms of the performance budgeting reform; France, South Korea's performance budgeting started late but more comprehensive; Sweden and Singapore make the budgetary system closely connected with performance and formed its own characteristics. These performance budgeting practices of aboved countries, providing a better experience and enlightenment for our country to further promote budget performance management.The implementation of budget performance management in our country has experienced the different stage, from the performance evaluation of exploration to the establishment with the idea of whole process of performance management, basically forming the budget performance management system which including "budgeting objective has been targeted, execution has been monitored, completed budget has been evaluated, and the evaluation results with feedback, the application of the evaluation results with feedback". In recent years, the scope of performance evaluation has been further expanded and its pattern continue to developed, performance management for budgeting objective has been strengthened, performance monitoring came into implementation, evaluation results is applied effectively, the construction of the institution has been bring into force gradually, the foundation work has been compacted. In a word, we have already made a significant progress in budget performance management. But at the same time, there are various aspects of the budget performance management needs to be strengthened, including the link rope of budget performance management, the performance management mechanism, the matched reform, the foundation work, and so on.According to the progress of China's budget performance management, and referencing the theory and practice of foreign performance budgeting, this paper puts forward the idea of budget performance management by two aspects of short-term measures and long-term reform. In the short time, it mainly improves and completes the whole process of performance management system as the current priorities, which standardizing the management procedures and content, enhancing performance objectives, performance monitoring, performance evaluation, and the results of the application, as well as the other measures. With the basis of improvement the budget performance management system, we should recognize the performance budgeting is the inevitable trend of the budget management in the near future, and clearing the next direction of reform, giving a comparative analysis of the gap between the current budget performance management and future performance budgeting, therefore proposing the implementation strategy and development path of performance budgeting reform, and outlining a clear road map for the performance budgeting in the long run.This paper focused on promoting budget performance management with linking theory and practice, combining analysis and comparison of research methods, which discussed the relevant issues in detail as much as possible with a more comprehensive thinking, proposed a set of improvement and development measures on budget performance management goals, content and the developing path, and make a clear direction for current and future periods, for which has a certain guiding significance and practical value of budget management in China.