Performance Evaluation Under Programme and Performance Budgeting System

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Performance-Based Budget Systems By Richard D. Young USC INSTITUTE FOR PUBLIC SERVICE AND POLICY RESEARCH - PUBLIC POLICY & PRACTICE JANUARY 2003 11 The modern world is a highly complex one. It is moreover in a constant state of change. As testimony to these facts, one need only take a glance at the complexities and changes of today’s demographics, economies, technologies, and environmental surroundings. Governments are highly aware of these intricate and mutable realities and are striving, as best they can, to keep in step. Public budgeting is one area in particular that governments are giving attention to in order to respond to a changeable world. To do this, governments are attempting to provide reliable and complete information to budgeters and policy-makers alike so that substantive budget choices can be made. Governments today are especially trying to ascertain how well public organizations and programs are doing in providing services and products to their citizenry. Governments are asking: “What kind and how many services are we getting from allocated dollars?” “Are these public services of good value?” “Are they making a difference in citizens’ lives?” To answer these questions, and other equally significant ones, governments are developing and implementing “performance-based budgeting” systems. No longer satisfied with traditional budgeting processes, new and, in some cases, renewed interest in linking planning and performance measurement to budgeting is taking hold. Governments are looking beyond inputs or line-item expenditures to make informed decisions, choices that address long-term effects or outcomes, and choices that are grounded in measurable progress or accomplishment. In this section, performance measurement and budgeting will be discussed. Performance budgeting will be defined and its various uses will be reviewed. Next, the main

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