Study On The Influence Of Local Government Budget Performance Management Reform On The Efficiency Of Fiscal Expenditure

Faced with the repeated epidemic situation and the changing economic situation at home and abroad,the efficiency of local governments’ fiscal expenditure has been greatly threatened.How to improve the efficiency of fiscal expenditure has become an important issue to improve government efficiency.As a restraint mechanism,the reform of budget performance management is helpful to optimize the expenditure structure and improve the efficiency of the use of financial funds.Observing the reform practices of budget performance management carried out by local government in the past 20 years,we can find that our country has basically formed the framework of the reform system of budget performance management,and there are many experiences worth summarizing.However,the administrative cost of the government remains high for a long time,and the financial transparency is low,which shows that the reform of budget performance management has not achieved the effect,hinder the local government expenditure efficiency improvement,so it should be cracked.Theoretically speaking,the reform of budget performance management is conducive to expanding the research paradigm of how to improve the efficiency of local fiscal expenditure and strengthening the attention and concern of the related research of budget performance management reform.In terms of practical significance,first,it will help ease the contradiction between local fiscal revenue and expenditure,improve the efficiency of expenditure,and give better play to the role of fiscal expenditure.Second,it is conducive to improving the construction of financial management system and promoting the realization of Chinese-style modernization.So,for many years how is the efficiency level of our various local government finance expenditure? Does the reform of local government budget performance management affect the efficiency level of local fiscal expenditure? In what ways does the reform of budget performance management affect the efficiency of fiscal expenditure? This will be the starting point and foothold of this paper.Firstly,this paper defines budget performance,budget performance management,fiscal expenditure and fiscal expenditure efficiency.This paper introduces the theories involved,including the new public management theory,principal-agent theory and government budget "reward theory",which lays the foundation for the empirical research in the following paper.Secondly,it describes the development status and problems of local government budget performance management,and uses DEA method to measure the efficiency level of local financial expenditure.After that,the provincial panel data from 2009 to 2020 was used to build a difference-difference model for empirical analysis,and through the intermediary variables such as government administrative cost and financial transparency,the impact mechanism of budget performance management reform on the efficiency of local government financial expenditure was studied.In the end,this paper mainly expounds the conclusions and countermeasures.Through theoretical analysis and empirical verification,this paper draws the following conclusions:(1)The efficiency of local government fiscal expenditure is generally low.In the long term,the efficiency of Chinese local government financial expenditure has been improved,as a whole presented the "high East and low west" situation,which showed that the management system and management method of central and western regions still have some problems.(2)The reform of performance-based budget management has significantly improved the efficiency of local government expenditure.The results show that the reform of budget performance management provides a practical and effective way for local governments to improve the efficiency of fiscal expenditure and points out the direction for relieving the pressure of local finance.(3)through the test of influence mechanism and path,it shows that the influence mechanism and path of budget performance management reform to help local government financial expenditure efficiency lies in that budget performance management reform can help reduce government administrative costs and improve financial transparency.The innovation points of this paper are as follows: From the perspective of research,by referring to the existing literature and relevant policies,this paper analyzes the impact path of budget performance management reform on the efficiency of local government financial expenditure,and uses empirical verification to supplement the existing research on budget performance management reform.In terms of research methods,the mediation effect model is introduced,government administrative cost and financial transparency are taken as the intermediary variables,and the mechanism and path of the impact of budget performance management reform on the efficiency of local government financial expenditure are tested through empirical method,so as to put forward targeted policy suggestions.