The Balanced Scorecard (BSC), a strategic performance management tool, is well received and applied by many world organizations; however government organizations have not really implemented it. Government management issue has no organic relationship with system innovation, institutional reform and transformation of functions. There is a lack of scientific and reasonable performance appraisal indicators for government reform, let alone the improvement of the government management level. The study was carried out to construct the Chinese government performance appraisal system using the BSC method, which mainly in the aspect of financial perspective, customer perspective, internal process perspective and learning and growth perspective. The application and implementation of the BSC can be an important measure of government management innovation, and plays an important role in the process of function transition and administrative system reform.