Abstract

This book is result of combined research on public economics and public management. On the belief of the government would be more efficient by reform, its function is abstracted as provision of public goods（PPG）.

First, government budget is analyzed in the view of Life Cycle of Public Goods（PGLC）. This Cycle starts from public needs, consisting of three phases—preparation of PPG, realization of PPG, and consumption of PG. Such a cycle is accordant to that of government budget well. PPG is triggered by public demand, which is forecasted and planned in the stage of budget preparation. That is why it is viewed as where budget performance being rooted. In the following process of public choice, such issues as priority, scale and structure of PPG are determined by legislation, which is correspond to stage of budget approval. When the government is authorized to levy tax, it has to carry up the responsibility to provide PG. This is called Buchanan's Fiscal Exchange. As a result, a new relationship between the public and government is created, and meanwhile public demand is transformed to Effective Public Demand（EPD）. Such a budget is a detail account of EPD. Realization of PPG is the result of budget enforcement, which makes resources needed available. Utility of public goods is realized by consumption, and the result of PPG is demonstrated gradually, which is composed of satisfaction of citizen, public trust and a new component called government existence and continuance.

Secondly, PGLC is set as theoretical foundation of government budget performance measuring（GBPM）. From the view of public economics, performance is internal connotation of public finance, and the relationship between them can be generalized as“six-people”finance—performance is derived from the public demand, and become legalization by people's authorization；performance is inherent when taxing the people, and is realized by making use of public funds; people's supervising right means performance information（PI）and it must be reported and open for them, in order to win their trust and continuous support. From the view of public management, performance idea is evolving, too. Efficiency is the most important idea in traditional Public Administration, which was substituted by result-orientation idea in New Public Management. In eyes of New Public Service, performance is endogenous and part of government governance, “Double E”idea is advocated, “effectiveness first, efficiency second”has become popular belief on performance today. On the dynamic mechanism of government performance measuring（GPM）, the interactive demand and supply of PI constitute a mutual strengthening spiral model, empowering consecutive GPM activities globally.

Thirdly, a new comprehensive model on GBPM named TSE model is created on the base of PGLC. Traditional models on GPM such as Efficiency model, 3“Es”model and IOO（Input-output-outcome）model are far from satisfaction on covering such ideas as People First, democracy in decision-making and the ultimate purpose of GPM. Based on PGLC model, the newly built TSE model can not only overcome limitations of traditional models well, but also enlarge the scope of result, and meanwhile afford theory support for performance budgeting and supervising. According to it, GBPM can either go forward in the order of PGLC, or work in space hierarchically, focusing 3“Es”in contents. So TSE model is a Three-Dimension-in-One theoretical framework actually, which can hold any kinds of GBPM activities. Efficiency is emphasized on process performance measuring, and effectiveness is highlighted on result measuring. At the same time, “Effectiveness First, Efficiency Second”should be insisted as criterion on trade-off. In a word, GBPM should focus on budget enforcement efficiency and consumption result of public goods, and should be part of budget report and helpful in new budget decision. TSE model has been applied in several measuring activities, and expected to benefit more activities to improve national welfare.

What's more, this book states some basic conditions for GPM, analyzing main challenges in China, putting forward some countermeasures to reform on GBPM and some advice on further study, such as to employ PI better, to measure more aspects of performance such as fiscal policy, decision-making and supervising, etc.