A Study On Projects Performance Budgeting From The Perspective Of Contract Theory

Performance budgeting is a kind of budget management method which is based on goal setting, with performance evaluation as the core and result-oriented. It integrates performance and budget and underlines results as the basis of public financial fund allocation. In performance budgeting system, the budget relationship among the participants transforms from a hierarchical relationship to an equally discussing and consulting contractual relationship. Performance budgeting is an important reformation and innovation of fiscal management system which can make public finance better play its role, standardize and strengthen the management of department budgetary outlay, optimize financial resource allocation and increase the expenditure efficiency of public finance.This thesis takes some specific practices of local projects performance budgeting as examples, uses contract theory and game theory to analyze the key processes of performance budgeting, which includes:performance budgeting compilation, performance budgeting evaluation, performance budgeting results application. The thesis comes to the following conclusion:improve the project performance budgeting evaluation which should consider the administrative levels of budget units so as to improve the evaluation quality; propel the application of performance evaluation results and establish a perfect reputation and incentive constraint system.