Study On The Current Situation And Countermeasures Of S City’s Financial Performance Evaluation

Financial performance evaluation is a comprehensive application in public finance management based on various modern management theories and scientific methods. It focuses on outputs and outcomes of financial capital investments, and emphasizes the responsibility and efficiency of a unit department. The result-oriented financial performance, which takes performance assessment as a means, has been widely and positively used in western developed countries since 1980 s. With the high-speed development of information technology, constantly growing government expenditure scale, and increasingly transparent government public expenditure management, financial performance evaluation has been gradually adopted by developing countries in recent years. Since the reform on Chinese public finance has been furthered, people have a higher requirement on the government’s scientific decisions on fiscal expenditures and improvement of utilization efficiencies of financial capitals. At the same time, financial departments at all levels start to attach importance to financial performance management, and continuously carry out pilot reforms. However, as financial performance evaluation is new in China, it involves a wide range and is hard to reform. Therefore, there will be inevitable shortcomings such as insufficient legal guarantees, executor’s weak responsibility consciousness for performance management, and an imperfect system construction and so on.20 years of rapidly growing financial situation in S city has been changed since 2013. Its fiscal revenue gets a sharp decrease from a long-lasting high-speed growth. Moreover, revenue and expenditure structure adjustment will totally lose its flexibility when a steep drop fiscal growth overlap with “chronic diseases”--financial division and solidifications among departments. In addition, the finance will face a serious allocation dilemma, leading to a worse and beleaguered financial allocation. However, this background is a good opportunity for changing “the crisis of slow income growth” into “cracking financial division and solidification”. In the meantime, it is a good chance to further improve expenditure efficiency of special funds and increase management level of government public service through financial performance management. For this, it is of both theoretical and practical significance to find out problems and shortages in S city’s financial performance evaluation, and to study how to establish a perfect financial performance evaluation for S city. Starting from the concept of performance evaluation, the connotations of performance connotations in the public finance funds management are explained, and the main method and theoretical foundations of financial-capital performance management are introduced based on basic theories of management. In the following part, this paper compares, the author makes an in-depth analysis, proposes the corresponding countermeasures, gathers some experience, and analyzes problems and causes. Finally, based the actual situation of S city, this paper explores how to promote the reform of financial performance management in S City and provides related countermeasures and suggestions.