A Study On The Effect Of Local Government 's Financial Expenditure Performance Evaluation

In the 1980s, with the rise of New Public Management Reform, the results-oriented Performance Budgeting has gradually become the target of budget reform all over the world. In 2003, the concept of Performance Budgeting was introduced into China’s budget system, and its core content, Performance Evaluation on Fiscal Expenditure, has been in practice since then. Minghan District, Shanghai started Performance Evaluation in 2008, and has acquired some achievement. It’s a good case to study the effect of Performance Evaluation.Performance Budgeting is a form of budgeting that relates resources allocated to measurable results, featured with central controlling with goals, decentralization of means, accountability for results, and keeping open and transparent. As the core content of Performance Budgeting, Performance Evaluation inherits its basic idea and feature. Therefore, effective Performance Evaluation should cover the whole process of budget, use a results-oriented evaluation frame, and make the process and results transparent.The ultimate goal of Performance Evaluation is realize the change of government budget, so the effect of Performance Evaluation mainly reflects in the influence on government budget. The effect of Performance Evaluation can be viewed from the ’process dimension’and’function dimension’. According to the practice of Minhang District, it can be concluded that Performance Evaluation can effectively impact the budget process and monitoring, while can hardly impact the budget function and results.It is effective in impacting the process and monitoring because of the construction of law system and organization, while it is ineffective in impacting the budget function because of a variety of reasons, including system factors, culture factors and technical factors. The political property of budget and the difficulty in relating performance to budget determine that Performance Evaluation cannot effectively impact budget results.The effect evaluation and the analysis of influencing factors has clarified the function range of Performance Evaluation, which brings some inspiration to the practice of Performance Evaluation. The suggestions are as follows:to find the reform momentum and define the position of Performance Evaluation; to strengthen the law system and build on the performance evaluation system; to create a performance culture and train the professionals; to create a motivate mechanism; to treat the Performance Evaluation rationally and admit its limitation.