From Compliance To Performance

From the late seventies and the early eighties in the twentieth century, western countries set off a large-scale and prolonged reform of government institution called 'New Public Management' ('NPM'), which appeared in Britain at first and then spread to other western countries. NPM is defined as the Public Management with Economics as its basis and with coordination of government markets as its core. NPM, becoming an influential school of thought in recent years, origin from United Kingdom and United States from eighties of twentieth century, and has been accepted by the whole western world. The appearance of NPM has great impact on both Fiscal Budget Management and Government Audit. Meanwhile, Government audit and Budget Management have functional connections and powerful promoting effect to each other. The article is going to present arguments about the relationship between Budget Management and Government Audit, especially to how Government Audit works to meet the requirement of Budget Management and make positive contribution to it in the reform of Performance Budget Management.