The Evaluation of Higher Education Expenditure Performance and Investment Mechanism Reform

Abstract

Along with the reform of Chinese Government public finance, higher education belongs to the public product, gradually changes from "fund investment management" to the "expenditure performance management". The evaluation of expenditure performance system becomes the key point of higher education investment mechanism reform. This article studies the level, mechanism, target, and method of higher education expenditure performance evaluation to explore the feasibility of establishing a unified and compared evaluation system, and carries it on the overall expenditure by the indicator system and evaluation analysis method to confirm the validity of university expenditure performance evaluation for higher education investment management. The findings show that expenditure performance evaluation is vital significant for establishing the new higher education investment mechanism based on performance by enhancing the fund investment efficiency and promoting the higher education development. The questions of higher education system receive attention in china and abroad day by day. In the countries of world economics cooperation and development organization it is a recent and strong trend as a way to study the potency and efficiency of education system by comparing among countries (the world economics cooperation and development organization, 2006b). Higher education system becomes the focus as important property of knowledge society. To countries, national economical competitive power depends on the operation of these institutions. Effective operation of higher education system needs sufficient funds and effective assignment. The nature of Quasi-public goods decides that government is an indispensable and important role in the allocation of resources for higher education; its efficiency can only be enhanced by the competitive channel provided together by the government and the market. Therefore, the competition introduced by government to substitute for original mechanism becomes the important topic of the new public administration (NPM), also it is the key for the reform of Chinese higher education investment mechanism. This article discusses two points: First, the establishment of higher education expenditure performance evaluation system is a request for the reform of Chinese higher education investment mechanism. Second, the higher Education expenditure performance evaluation can discover the key point of higher education investment mechanism reform present by quantitative analysis of expenditure performance.