China's Local Government Performance Budget Reform Research

As the core component of new public management, reform of performance budgeting plays an important role in improving the efficiency of government spending, solving fiscal crises, management crises and confidence crises. It has become an international trend of budgeting reform and development, and long-term goals and directions in China’s future budgeting reform and development. Reform on local government budget management in China is still in its initial stage, and the current reform is still mainly budget-control-oriented. In recent years, the central government and the local governments, the financial ministry, budget departments as well as the relevant research institutions and scholars have conducted their respective in-depth theoretical studies on such issues as the government budget, performance-based management reforms as well as system innovations. But from a theoretical perspective, China still does not carry out systematic researches and investigations from the background of the system of budget performance management. Therefore, it has become an important task for China to analyze and learn from the useful experience and practices of western developed countries to gradually establish a set of ways of reform on local government budget performance suitable to the national conditions of China. By taking reform on government performance in Inner Mongolia as an example,this articleillustrates the progress and effect of local government performance in China from thetheoretical background of budget performance.Besides,the model of performance appraisal in Inner Mongolia,as well as restraining factors,have been analyzed here according to the foreign and domestic cases. Also,a reform path of budget perfpormance has been put forward which is modern and conforms to the Chinese reality.The present condition of local government budget performance can be discussed from the following five aspects:concept,leadership organization,policy and evaluation.