Abstract: A stronger performance appraisal in college project budget has a very important prompting effect upon college resources allocation and efficient operation. The introduction of performance appraisal system into college project budget management not only can optimize resources allocation, but also rid colleges and universities of financial risks. However, the current college project budget management is long blamed for its simple budget compilation, inefficient use of its money, extensive mode of management, serious waste of project money and resources. In view of this, counter measures are put forth: the adoption of fine-grained management to intensify budget compilation and management with focus placed on the control of budget payment; to foster the awareness of performance appraisal so as to establish the project budget evaluation system for the construction of a goal-oriented performance appraisal system; to attach greater importance to the results of budget implementation and link it with the performance pay of a department so as to constantly improve college administration and make a better use of college resources and thus achieve better social benefits in school management.