Overview of the Measurement and Improvement of Military Financial Expenditure Benefits

Abstract

In 2018, China's defense spending budget increased by 8.1% and reached 11,069.51 billion yuan. As an important aspect of China's fiscal expenditure, military fiscal expenditure is related to China's national defense and army building capabilities, which affects the international status of China. This paper combs and discusses the efficiency of military financial expenditure theoretically, and analyzes the characteristics of the measurement of military financial expenditures at the macro, meso and micro levels. After comparing the changes in macro and micro fiscal expenditure benefits in terms of homogeneity, externality and measurement difficulty, it comes to the conclusion that the macro level efficiency of military financial expenditure should be studied by marginal analysis method, and the micro level efficiency of military financial expenditure should be studied by performance management method, cited by some usual research methods. Finally, starting from the different characteristics of macro and micro military expenditures, the paper summarizes the ways to improve the efficiency of military financial expenditure from both macro and micro aspects. Keywords—military financial expenditure; benefit evaluation; marginal analysis; performance management