Program Budgeting

The potential benefits of a performance-oriented budgeting system are well established and well understood. Improving the level and quality of information on achievement of desired outcomes and the effectiveness of budget resource allocation is critical to ensuring that these resources are directed to programs where the benefits are highest. Monitoring of cost-effectiveness of government expenditures also helps reduce the costs of delivering specific government services and public goods. A performance-oriented budget is also important in maintaining long-term fiscal discipline as an outcome based performance measurements system contributes to the resource allocation decision process and can assist in targeting resources towards more productive and growth enhancing expenditure areas. It is also a valuable tool in making public finances more transparent and accountable by focusing on what is actually achieved through implementation of the government’s expenditure programs.[...]