A Study Of The Introducing Performance Budget Into Suzhou Government

In recent years, paralleling with the gradual deepening of China's marketeconomic system, Finance departments are conducting a "quiet revolution" focusingon establishing a socialist market economy system of public finance framework. Aseries of reforms such as departmental budget, centralized treasury payment,classification of government revenue and expenditures are launched at various levels.What's more, the Third Plenary Session of the Sixteenth Central Committee ofthe Communist Party of China put forward an evaluation about the performancebudget, showing clearly that this results-oriented budget mode will become ourcountry's ultimate goal of the reform.As a financial officer, I worked in the bureau of budget for years andexperienced all these reforms above. Despite the deep financial departmentsimplementing departmental budgets for many years, the current budget method is notable to shake off the shackles of traditional patterns of financial expenditureinefficiency, difficulty of tracking the effectiveness, zero-based budget, which isfaced with numerous difficulties, I feel truly that it is necessary for the introduction ofperformance budgeting to improve the efficiency of utilization of funds.In consideration of all these problems, I choose Suzhou government budget to bemy investigation subject. By using public finance theory and public choice theory, Ianalyzed the present situation and existing problem facing our government'sbudget.By comparing western countries' budget reform process; I arrive at a conclusionthat Suzhou can't carry out a comprehensive performance budget reform because ofthe restraint factors such as budget reform stage and the existing accounting system.However, we need to learn from foreign performance budget managementexperience, introducing the enterprise-orientated spirit into the budget management,which means building up a budgetary procedure mode combining the process controland the result-orientation. By doing so, we can finally explore an effective way to introduce performance budget into government's departmental budget.Meanwhile, I try to put forward some supporting policies at this stage of theimplementation of performance budget reform. A restraint mechanism combinedwith performance evaluation and budget planning will be established by changingthe budgetary methodology and procedures.