Research Of China's Fiscal Expenditure's Performance Evaluation

This article tries to establish a more scientific indicator system with analyzing indicator system using in actual projects in local government's fiscal expenditure, which has practical significance to complete the performance evaluation system construction.This paper has five parts. First, it introduces the background of the research and analyses the current situation of fiscal expenditure throughout the world, and then completes the paper's framework. Second, it elaborates the basic theories of the fiscal expenditure, which will be the basis of new performance evaluation indicator system. Third, since there are such problems of local government's performance management, the paper proposes improving ways to the using indicator system. Forth, with the reference of the Balanced Scorecard approach, the paper constructs a new indicator system which includes operation flow, finance, public and improvement indicators. The same time, the paper uses interval statistics method to calculate weights of the indicators, making sure the credibility of the indicator system. Last, it uses new indicator system to evaluate the fiscal projects and compares with the evaluation of those projects used in the old indicator system. And the conclusions are as follows:the result of evaluation in new indicator system is less than the evaluation in the old system; compared with operation flow and finance indicators, public and improvement indicators have much room for improvement; and some fiscal projects have changes in sort order and grades. In view of the issues of local financial performance evaluation, the results above are more in line with reality.