## A Basic Model of Performance-Based Budgeting

_Technical Notes and Manuals, September 21, 2009_

## Source details

**Canonical URL:** [A Basic Model of Performance-Based Budgeting](https://www.imf.org/en/publications/tnm/issues/2016/12/31/a-basic-model-of-performance-based-budgeting-23247)

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## Bibliographic details
- Authors: Duncan P Last, Marc Robinson
- Published: September 21, 2009
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9781462320271.005

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### Overview
- Presents a basic model of performance-based budgeting.
- Describes the characteristics of the model and explains how low-income countries should approach performance-based budgeting.
- Emphasizes necessary preconditions for any move to performance-based budgeting—recognizing that performance-based budgeting, even in its basic form, should not be considered in countries with seriously dysfunctional public financial management and governance systems.
- Outlines reasons why more complex performance-based budgeting models of performance-based budgeting may not be appropriate in many countries.

### Key characteristics and findings
- The note defines a “basic model” of performance-based budgeting and highlights its distinguishing characteristics.
- Emphasizes that performance-based budgeting requires specific preconditions in public financial management and governance before it can be considered.
- Warns against adopting performance-based budgeting in countries with seriously dysfunctional public financial management and governance systems.

### Guidance for low-income countries
- Recommends an approach tailored to the capacity and institutional context of low-income countries.
- Advises that even the basic form of performance-based budgeting is inappropriate where key preconditions are lacking.
- Suggests that more complex models may be unsuitable in many countries due to institutional, capacity, or governance constraints.

### Limitations and cautions about complex models
- Explains reasons why more complex performance-based budgeting models may not be appropriate in many countries.
- Implies a cautious, incremental approach: adopt basic, feasible reforms rather than complex systems that the country cannot support.

### Administrative and topical metadata (as presented on the page)
- Authors: Duncan P Last, Marc Robinson
- Date on page: September 21, 2009
- Notes: Full text also available in Spanish.
- Subjects: Budget planning and preparation, Civil service, Expenditure, Performance-based budgeting, Public financial management (PFM)
- Keywords: budget, cost, country, government, ministry budget submission, TNM

*Technical Notes and Manuals — "A Basic Model of Performance-Based Budgeting" (page content provided on the IMF web landing page)*

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_Source: https://www.imf.org/en/publications/tnm/issues/2016/12/31/a-basic-model-of-performance-based-budgeting-23247_