Research On Performance Appraisal Of Government Investment In Tianjin Industry Technology

In December 2012,Premier Li Ke qiang stated, "Pull one hair and you move the whole body. Similarly, to perform the financial restructuring, we need to involve the reform of our whole system." On January 22nd 2014, when he held the State council executive meeting, he also pointed out, "Management of projects and funds needs to be improved, to give professional and reputable parties priority of the financial funds. The efficiency of funds allocation should be increased. The financial funds should play a skill fully directive role, and should be used where they are needed the most. "Since the reform began, the Chinese economy has maintained continuous, rapid growth for more than 30 years. The national public financial revenue reached 12.91 trillion CNY in 2013, which is 1.19 trillion CNY more than the previous year, i.e. a 10.1% year-on-year increase. Within a few departments and local governments, an ’unhealthy’ atmosphere is spreading. They unrealistically compare the economy quantity and blindly chase numbers. They undertake investments without planning, projects without demonstrations and make expenditures without concern for real performance appraisal. There are even alleged meaningless and fake projects which are simply used for exaggerating political achievement. The speech of the Premier implies that the performance appraisal of government finance is an urgent issue that needs to be solved and is core to the building of an incorruptible and efficient government which, is under the rule of law and serves the people.In 2004 the Financial Department of the State Council issued the "’Guidance by Financial Department on Launching Performance Appraisal for Budget on Central Government’s Investment"(Financial Construction [2004] no.729).In 2009, the Financial Department issued "Information for Further Pushing Trials of Performance Appraisal for Central Departments’Budget on Investment Expenditure" (Financial Budget [2009] no.390), aiming for pushing trials of performance appraisals for central departments’budget on investment expenditure.In 2007, Tianjin Municipal Government issued "Tianjin Municipal Regulation onPerformance Appraisal of Financial Expenditure (for Trial Implementation)" (Tianjin Government Office Issuing [2007] no.101), that officially brought financial investment expenditure into a performance appraisal system.In 2011, the Financial Department issued "Interim Regulations on Performance Appraisal of Financial Investment Expenditure" (Financial Budget [2011] no.285), to expand the original central financial expenditure oriented performance appraisal system to the country as a whole. In 2012, Tianjin Municipal Government issued "Tianjin Municipal Regulation on Performance Appraisal of Financial Expenditure"(Tianjin Government Office Issuing [2012] no.2), that brought the departments in charge of transferring funds from municipal to county level, into the performance appraisal system. Item phasised that projects with an investment over 5 million yuan should achieve obvious economic and social benefits and would be major targets for performance appraisal. It can be seen that at both national and local levels, performance appraisal of financial expenditure is steadily progressing, and some achievements have been made. However, because the performance appraisal of financial expenditure in the country has only recently been introduced, it is still in state of exploration. As such there are various problems in the implementation process. Government investment is a major and important part of financial expenditure.This thesis is divided into 6 chapters. Firstly, the general situation of the Tianjin government investment in industry and information technology is introduced. The problems occurring during the process of performance appraisal, along with their reasons are analysed. Secondly, the theory of balanced scorecard is introduced.Associating the real situation of the Tianjin government investment in areas of industry and information technology and choosing the special fund for Tianjin industry technology development as research object, an indicator system based on balanced scorecard for performance appraisal of Tianjin’s Industrial technology development special fund is created, together with the performance appraisal process. Thirdly, the balanced scorecard method is applied to the funding of Tianjin industry and information technology development. Next, an indication system based on the balanced scorecard is produced creating a performance appraisal flow path. The effects of this on Tianjin industry technology development funding are then illustrated. Lastly, conclusions are made, along with a discussion of possible future prospects. This paper provides an example of government investment project performance evaluation, applying the balanced scorecard theory to tianjin government investment project budget performance evaluation work, has made some exploration to promote government performance evaluation of project.