Performance Measurement and Control of Local Government Expenditures
|School||Ocean University of China|
|Keywords||local government expenditure performance total factor productivity performance evaluation system performance budget performance audit|
With the gradual improvement of market economy system and the establishment of public finance framework, our country has built up a stable financial revenue growth mechanism, with the finance revenue gradually increasing. However, despite of the mature of financial revenue mechanism, the reform for the management of financial expenditure has just begun, entering a new stage focused on financial expenditure management from that focused on financial revenue management. In current, the reform proceeds with difficulties. The main problems include the enduring existence of the flaw in financial fund management that it attaches importance to revenue, distribution and projects, neglecting expenditure, management and benefits, and the bad performance of local governments’ expenditure, the vagueness in the actual conditions of financial expenditure performance without consensus on key influence factors, and the lack of a scientific and standard control system for the management of local government’s expenditure.With the performance of local governments’ financial expenditure in the perspective of state fiance as the core research basis, the paper focuses on the quantitative calculation of the performance of local governments’ financial expenditure, paths of performance variation, performance sources and various elements influencing the performance, carrying out the research centering on elements influencing the performance, demonstration of expenditure performance. Based on the quantitative calculation above, the paper further explores the controlling of local governments’ expenditure from the evaluation of local governments’ expenditure performance, expenditure performance budget which is its starting and result, and performance audit which is the monitoring and guaranteeing system. As a result, the paper first quantitatively analyzes the space differences, changing trend of change and influencing factors of the local governments’expenditure performance by introducing GTFP model. Moreover, the paper makes empirical analysis on local governments’ expenditure performance taking Qingdao as the example, and comprehensively analyzes local governments’ expenditure performance. In further, the paper creates an evaluating system for local governments’ expenditure performance, providing a reference for the diagnosis of local governments’ expenditure performance and the judgment of its key nodes; establishes a controlling system for the budget of local governments’ expenditure performance from the aspects of performance budget system, budget management system, and etc.; designs a system for the audit of local governments’ expenditure performance form the aspects of performance audit functions, performance audit contents and key points, and etc., providing more pertinent reforming plans for local governments’ controlling of expenditure so as to improve local governments’ expenditure management and guarantee the effective realization of local governments’ expenditure performance.The main conclusions and innovations are as follows:Ⅰ. This part introduces a further exploration to the existing research and puts forward the concept of GTFP. In order to evaluate the performance of public services (products) producers-the Chinese provincial local government from the prospective of economic efficiency, this part establishes the GTFP model with the financial expenditure, the population of financial support, and the capital input as the input variable, and with the level of economic development, social security, education, income gap,etc, as output variable. The reached conclusion is that the local government GTFP is in the state of negative growth, there are lots of differences between different provinces in terms of GTFP, and there is large room for improvement for Chinese local government GTFPⅡ. By the establishment of provincial panel data model, it is found out that the main reasons to the difference of local government GTFP are the financial decentralization and the education level. The relationship between financial decentralization and local government GTFP is U-shaped, and2.95is the optimum decentralization, Education level plays as the main role in effecting the technical change elements of local government, and financial strength in different areas doesn’t have an obvious influence on local government GTFP. It shows that the improvement of management and the self striving could offset the disadvantages caused by the inadequate financial strength and the backward economic development.Ⅲ. Through establishing the error correction model and analysing the data of Qingdao from1994to2010, it is concluded that local government expenditure performance still plays a positive role in economic construction, however, it crowds out the private investment in some ways and is at a low degree of supporting the employment. That in the short term the financial expenditure is capable of going back to long-term-balance quickly represents the local government’s strong power of controlling and adjusting.Ⅳ. Starting from the local government expenditure comprehensive performance system first degree indicator, this part brings forward4second degree indicators, namely, economic benefit, social benefit, environmental benefit, and internal management benefit, and proposes26third degree indicators. By establishing a complete local government expenditure comprehensive performance system, this thesis provides a basis for diagnosing the local government expenditure performance and determining the critical nodes.Ⅴ. Based on reviewing the development progress of local government expenditure performance budget and on redefining the scopes of local government function and expenditure, this part establishes the local government expenditure performance budget control system in terms of local government expenditure performance evaluation budget objective, performance budget formulation regulation, performance rewards and punishments regulation, government financial report regulation,etc,.Ⅵ. This part builds the local government expenditure performance audit control system from the aspects of the performance audit function, the performance audit content and key point, the performance audit measures, the methods to promote performance audit,etc,.