Research On Investment And Financing Of Local Government Performance Evaluation

As the most active and most interesting financing body, the local government investment and financing platform arouses widespread concern in the different sectors of the country. In the June2010the State Council has issued a [2010]19document, entitled a notice of strengthening the management of local government’s financing company by the State Council. In order to further implement this document and reduce the debt risk of the Government’s investment and financing institutions, this article aims to study the performance evaluation of local government’s investment and financing institutions, from the perspective of the local government and government administrative department.Based on the current research situations of government investment and financing as well as performance evaluation, both at home and abroad, the author finds that the local government’s investment and financing platform is facing difficulties, and points out the solutions it can seek. For example, the local government should establish the performance evaluation system of investment and financing, and raise an investment and financing-oriented strategic objective by combining delegate agent theory, target management theory, stakeholder theory and balanced scorecard theory. The local government should also construct investment and financing balanced scorecard, making some proper adjustments, and eventually make the evaluations on its performance from the four perspectives, namely, the accomplishment of the government’s mission, finance, the construction of internal system and work process, and learning and growing process. The paper puts forward fifteen quantitative and qualitative key performance indicators, based on the ultimate goal of realizing the integration of investment, financing and repayment, which cover the time node and working node of all relevant departments and individuals, such as the investment department, financing department and repayment department etc.By handing out questionnaires and having interviews with experts of investment and financing institutions, by weighting analysis of various key performance indicators, as well as the corresponding indicators of the next level with the help of analytic hierarchy process, and finally by making performance evaluation on the local government’s investment and financing with the help of fuzzy comprehensive evaluation method, the paper provides a performance evaluation system suitable to the local government’s investment and financing on the basis of China’s national conditions. The paper takes Shenyang municipal government as an example, taking the actual situation of Shenyang municipal government into account, and constructs the performance evaluation system of Shenyang local government investment and financing.This performance evaluation system is of great practical significance, which is helpful for establishing scientific and standardized management of government investment and financing system, and improving the operating mechanism of government. This performance evaluation system is also good for the government to master its resource allocation in time, to standardize government financing and debt management, and prevent government debt risks. It also helps to enlarge and strengthen the Government’s investment and financing institutions, to promote the development of local government. The establishment of this performance evaluation system provides an important basis for the government to evaluate the investment and financing institutions.