Research On Performance Management Of Public Budget For Agricultural Industry Of Yulin City

Yulin is a city known for its agricultural abundance. Throughout the years, Yulin plays an irreplaceable role in leading the agricultural development of Guangxi Province. The city places high importance on providing financial aid to the agricultural industrial in hope to build the city an exemplary city of modern agricultural technology in the province. Having strong financial support is the key to developing a city’s agriculture thus the way to manage government funds for agricultural industry expenses is the topic one should never neglect.Financial aid to agricultural industrial as part of the total government expense faces a problem of low return of investment. Each involved department seems more concerned in asking for more aid than utilizing the received fund for optimum use. As a result, much of the aid has gone into waste. Thus the issue of how to improve the efficiency of government fund to achieve high return rate of investment is a burning question to be answered.Budget performance management being a major component in government’s overall performance management program is a result of the process in making government finance management scientific and accurate. The effort in improving budget performance management is to ultimately improve the expenditure costing, financial resources planning and upgrading the quality of public services. In recent years, along the trend to improvment public fund efficiency, the finance department of Yulin city is constantly trying to improve its budget performance by actively experimenting with several specific funds. However, budget performance management is still a relatively new concept to the city and only selected agricultural financial aid recipients are being monitored. Certain area of assessment like target setting and work flow process are yet to be fine tuned. Moreover the selected recipients only represent certain categories of agricultural industrials thus their performance are not representative of the entire city’s.This paper gives suggestions on improvement of the current budget performance management practice based on the analysis of past years’fund allocation to agricultural industries, expenses management, results of pilot projects and reference on other successful cases from both China and overseas.