Comparison and Enlightenment on Domestic and Foreign Financial Performance Budget Reform Ideas

Abstract

Under the current trend of globalization, the efficiency of government management has gradually become a significant factor affecting international competitiveness, and the financial performance budget management reform has also been accelerated in various countries. Although China started relatively late in performance budget reform when compared with western countries, it has made some achievements in reform for continuously strengthening public finance management system construction, gradually developed a fiscal expenditure performance evaluation system and deepened government financial accounting reform. However, Chinese theoretical circles and practical affairs authorities still lack understanding of performance appraisal and consideration of performance in budgeting and allocating funds. Especially, they give too much attention to standard requirements for fiscal expenditure management but think little of the output and effect. To this end, China still lags far behind western countries in performance budget management. Therefore, it is of great significance for China to summarize western countries’ experience in reform and apply such experience in its ongoing budget reform. This paper, based on the analysis of foreign performance reform ideas, will discuss their influence on China’s performance budget.