The Impact Of Budget Performance Management Reform On Provincial Financial Competitiveness

As an economic category,finance is an important measure of a region’s economic strength.Provincial financial competitiveness is the concentrated embodiment of regional financial strength,which determines the inter-governmental financial relations and the level of regional economic development to a certain extent.Along with the increasingly complex financial relationship between all levels of governments in our country,at present in some regional allocation of funds,there exist the low efficiency or no efficiency of the use of funds,the various ills of the use of financial funds,as for the provincial finance,will cause the serious revenue and expenditure contradiction,cause the local government to issue excessive government bonds in order to make up the deficit.The accumulated debt problems of the local government will make the local economy fall into a bad cycle,which will affect the financial competitiveness of the local government,and even affect the regional economic competitiveness of the province.To improve the financial competitiveness of provincial region is an objective requirement of strengthening the comprehensive strength of provincial economy and realizing modernization.The local government competition in the financial field is a competition of efficiency.The implementation of the reform of budget performance management and related policies in our country are committed to improving the efficiency of the use of financial funds,and there is no consensus on whether this policy has an impact on the financial competitiveness of the province.In view of this,this paper takes the budget performance management reform of China’s provincial governments as the natural experiment.Based on the panel data of the fiscal competitiveness of each province from 2000 to 2020,this paper uses the multi-period differential model to explore the impact of the budget performance management reform of the local government on the fiscal competitiveness of each province from the empirical level.It is found that the reform of budget performance management can significantly improve the fiscal competitiveness of provinces,and this conclusion is still valid after the robustness test.Further tests of mediating and moderating effects show that the impact of budget performance management reform on provincial fiscal competitiveness is realized through its effect on the intermediate variable of fiscal fund use efficiency.Decentralization of local government positively moderates the impact of budget performance management reform on provincial fiscal competitiveness.Local debt risk negatively moderates the impact of budget performance management reform on provincial fiscal competitiveness.The research conclusion provides new evidence for understanding that the reform of budget performance management is conducive to improving the provincial fiscal competitiveness.On this basis,this paper proposes to optimize the structure of fiscal expenditure and improve the performance of the use of fiscal funds.We should consolidate reform of the fiscal and taxation systems and improve the modern fiscal system.We will standardize the debt management system and strictly control and prevent local debt risks.We should formulate policies according to local conditions and standardize the competition order among local governments.