A Study On The Performance Assessment Of Fiscal Expenditure Based On The Balanced Scorecard

Since1998， the central government clearly put forward the reform of public financetarget， many scholars have expressed their views and put forward any constructivesuggestions， all government agencies also responded positively to the call center andconducted a pilot activities. They have experienced15years of rapid development andgradually set up the frame of public finance. The fiscal expenditure performance evaluation，not only help to improve the efficiency of fiscal funds， adjust and optimize the expenditurestructure， but also help to promote the reform of the government budget managementsystem.The theory of balanced scorecard was created by Robert Kaplan (Robert S.Kaplan) whois Harvard University Business School professor and David (David P. Norton)who is therestoration project president of consulting company. BSC is about the theory of performancemanagement. The basic principle is to organize the strategy as the core， from four angles onthe growth of the organization strategy layers of decomposition，concluded customer，finance，process，and learning. Then determine the key strategic goal setting for each point ofview. Performance indicators and the indicators is be used to measure the target expectations.And make action plan to achieve target expectation value. The action plan could realize thepoint of key strategic objectives，also realize the organization strategy. The process ofdecomposition and implementation also contain an ordered feedback and correction echanism.There is no doubt about the applicability of the Balanced Scorecard in the nonprofitorganization. Minority government organizations also have cited the Balanced Scorecard toevaluate the performance of fiscal expenditure and achieved effective results. The experiencesis helpful to the success of the implementation of Balanced Scorecard and effectively apply tothe performance evaluation of financial expenditure.This paper from the research background and research meaning, firstly analyzes thepresent situation of domestic and foreign financial expenditure performance evaluation, andreiterates the significance of the fiscal expenditure performance evaluation. Then itsummarizes the theory of domestic and international research in the performance evaluationof public expenditure and is aware of the lack of theoretical research and in practice, to decidethe direction and foundation. Then this paper will use the strategic management tool-balanced scorecard method. This paper describes the development process and the basiccontent in detail and verify the feasibility of application to the financial expenditureperformance evalution. Secondly, as a important part of financial expenditure performanceevaluation system, on the basis of this the connotation, characteristics, main body, object,purpose, principle and hierarchy, using the concepts of strategic management and relying onthe balanced scorecard, establishes the strategy, determines the target values, design theaction plan, uses the evaluation results of the fiscal expenditure performance evaluationsystem. Finally, this article constructs the Tianjin comprehensive financial municipalexpenditure performance appraisal system using the Balanced Scorecard theory, summarizesthe shortages when basing system of financial expenditure performance evaluation in the useof the balanced scorecard, and provide experience of the application of BSC in reality.