Does Performance Budgeting Work? An Analytical Review of the Empirical Literature
IMF Working Papers, November 1, 2005
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- Does Performance Budgeting Work? An Analytical Review of the Empirical Literature
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Bibliographic details
- Authors: Marc Robinson, Jim Brumby
- Published: November 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862294.001
Summary
- The paper assesses what the empirical literature reveals about the efficacy of performance budgeting.
- Performance budgeting is defined as procedures or mechanisms intended to strengthen links between the funds provided to public sector entities and their outcomes and/or outputs through the use of formal performance information in resource allocation decision making.
- The paper focuses on "governmentwide" performance budgeting systems—systems used by central budget decision makers (ministry of finance and political executive) to link the funding they provide to agencies' performance.
- The paper explicitly does not attempt to review the empirical literature on all "sectoral" performance budgeting systems; instead it undertakes a case study of the literature on one specific sectoral system—output-based hospital funding systems.
Scope and focus
- Seeks to identify and examine literature on governmentwide performance budgeting systems.
- Notes that performance budgeting principles are also applied in sectoral funding systems, but limits empirical review to governmentwide systems plus a targeted case study of output-based hospital funding systems.
Key concepts and terminology (as used in the paper)
- Performance budgeting
- Outcomes and outputs
- Formal performance information
- Resource allocation decision making
- Governmentwide performance budgeting systems
- Output-based hospital funding systems
Subjects and keywords (verbatim)
- Subjects: Budget planning and preparation, Economic sectors, Expenditure, Labor, Performance-based budgeting, Public employment, Public financial management (PFM), Public sector, Tax incentives
- Keywords: agency budget appropriation, allocative efficiency, Australia and New Zealand, Budget planning and preparation, budget process, casemix funding, expenditure allocation, federal budget, Global, government employee, line item, management process, Managing-for-results processes, office official, performance budgeting, Performance Budgeting work, performance measures, Performance-based budgeting, political system, private sector, professional ethics, projection method, Public employment, public expenditure, Public sector, resource allocation, WP
Analytical emphasis and approach
- Emphasizes empirical literature as the basis for assessing efficacy.
- Uses a targeted case study approach for sectoral analysis (output-based hospital funding systems) rather than a comprehensive sector-by-sector review.
Marc Robinson and Jim Brumby, "Does Performance Budgeting Work? An Analytical Review of the Empirical Literature", IMF Working Papers 2005, 210 (2005).