Research On The Performance-based Budgeting Of Guangdong Province

With the construction of a service-oriented government, the advance of urbanization and the transformation of the reform of public finance,the demand for public services and public products keeps growing in a high speed. At the same time, with the continuous improvement of our living standards, the public require a higher level of the quality of public service and public products.On the one hand, this situation makes the scale of the rigid expenditure more and more big, on the other hand, the government’s available resources have difficulty in supporting the demand required by the whole society.Both less-developed Midwest areas and high-developed coastal areas,the contradiction between the spending demand of public goods, public service to develop regional economy and culture and the lack of available resources is very obvious.Thus,the implement of performance-based budgeting is very necessary.Performance-based budgeting, based on performance, takes the performance results as the starting point and belonging points in the process of the entire budget,that is in the process of budget establishment,execution, supervision after the event, the performance indicators is the standard to evaluate the result of capital operation. Performance-based budgeting is a method of management to improve the attention of output, so that it can supervise the relevant departments to improve the utilization of limited resources, promoting the construction of the government of efficient, responsibility and transparency.In western countries,the research and practice of performance-based budgeting is earlier than in our country, by using comparative and inductive methods, this paper analysis and summarizes the present situation of the implement of performance-based budgeting in the western countries.According to the Principal-Agent theory and Bureaucratic budget maximization theory,we analyze the necessity of the implement of the performance-based budgeting and discuss the connotation and the necessity of implementing performance-based budgeting.By the empirical analysis of Guangdong province in China,we analyses the role of the PBB for the fiscal expenditure.In the final part,we analysis the problems that exist in the process of implementing performance-based budgeting,and put forward corresponding suggestions.The content is described through five parts:Part I:Introduction, this part mainly introduces the background and significance of the paper, domestic and foreign literature review,the research methods and research content etc; Part II:The basic theory of performance-based budgeting,this part mainly expounds the Principal-Agent theory and Bureaucratic budget maximization theory, discussing the theoretical basis of implementing performance-based budgeting;Part Ⅲ: The current situation and empirical analysis of the implement of performance-based budgeting in Guangdong Province,obtaining a simple summary of the achievement in the process of implementing performance-based budgeting and regression analysis,through which this part demonstrates that the performance-based budgeting has a control on the fiscal expenditure; Part IV:The problems existing in the process of implementing performance-based budgeting in Guangdong Province and reasons analysis;Part Ⅴ:In this part,we try to give suggestions to solve these problems from these aspects:improving the conscious of supervision of performance-based budgeting、 improving the scientific level of evaluation system of performance-based budgeting etc.