The Empirical Test Of Subsidized Special Fiscal Funds’ Performance Objectives

Subsidy fiscal policy is an important measure which can support government to balance the relationship with economic and benefit, its performance objectives can be realized by the special fiscal funds that which is a main tool. In recent years, the scale of special fiscal funds is getting larger, and the quantity of financial expenditure project is more and more than before. As a new management system, the performance evaluation of financial expenditure was begun to carry out in June, 2009. The performance evaluation of financial expenditure is the main measure to enhance the efficiency of financial funds. From technical view, the performance evaluation of special fiscal funds should not only reflect the preset performance objectives of public finance, but also fulfill the characteristic of expenditure project. The performance objectives are a major standard to measure the output and result of financial funds within a certain period. It has a fundamental impact on the performance evaluation results of which is impartial and objective. Interim Measures for Fiscal Expenditure Performance Evaluation was implemented in 2011.It’s point out those performance objectives should be in accordance with the demand which is detailed and feasible. In fact, each special fiscal funds should be established a performance objectives, but it isn’t easy that performance objectives of financial expenditure project is realized in practice. How the realization of the performance objectives of special fiscal funds could be measure? What is the realization’s degree? What issues exist? What is the real reason behind it? That’s the core issue of this article which be focused on.Based on third-party performance evaluation results of three special fiscal funds( fisheries diesel subsidies, subsidies for breeding sows, rural reconstruction subsidy) from Guangdong Province, it’s founded that there are great disparities between the implementation degree of policy objectives and the original policy objectives. The performance objectives appear aliasing that leads to a series of issues which contains derivatives of corruption, fraud, interest groups and so on. The reasons include: theoretical paradox, the insufficient demonstration of special fiscal funds’ establishment, the formalistic performance objectives, the absence of the responsibility by competent authorities and the low policy support. Different from financial audit, performance evaluation of fiscal expenditure not only inspects the compliance of the use of funds, but also focuses on the science and democracy of the funds ’ establishment and allocation. In another words, it’s a correction mechanism. Under the realistic conditions, to promote third-party performance evaluation is a viable means of containment performance objectives aliasing, which can establish the public financial system and improve the credibility of public finance.