Abstract: The partitioning of precipitation into runoff (R) and evapotranspiration (E), governed by the controlling parameter in the Budyko framework (i.e., n parameter in the Choudhury and Yang equation), is critical to assessing the water balance at global scale. It is widely acknowledged that the spatial variation in this controlling parameter is affected by landscape characteristics, but characterizing its temporal variation remains yet to be done. Considering effective precipitation (Pe), the Budyko framework was extended to the annual water balance analysis. To reflect the mismatch between water supply (precipitation, P) and energy (potential evapotranspiration, E0), we proposed a climate seasonality and asynchrony index (SAI) in terms of both phase and amplitude mismatch between P and E0. Considering streamflow changes in 26 large river basins as a case study, SAI was found to the key factor explaining 51% of the annual variance of parameter n. Furthermore, the vegetation dynamics (M) remarkably impacted the temporal variation in n, explaining 67% of the variance. With SAI and M, a semi-empirical formula for parameter n was developed at the annual scale to describe annual runoff (R) and evapotranspiration (E). The impacts of climate variability (Pe, E0 and SAI) and M on R and E changes were then quantified. Results showed that R and E changes were controlled mainly by the Pe variations in most river basins over the globe, while SAI acted as the controlling factor modifying R and E changes in the East Asian subtropical monsoon zone. SAI, M and E0 have larger impacts on E than on R, whereas Pe has larger impacts on R.