{ "title": "Does Performance Budgeting Work? An Analytical Review of the Empirical Literature", "publication": "IMF Working Papers, November 1, 2005", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321", "overlayPath": "/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/index.md", "summary": "This paper attempts to ascertain what light the empirical literature sheds on the efficacy of performance budgeting. Performance budgeting refers to procedures or mechanisms intended to strengthen links between the funds provided to public sector entities and their outcomes and/or outputs through th", "sections": [ { "heading": "Summary", "content": "- The paper assesses what the empirical literature reveals about the efficacy of performance budgeting.\n- 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.\n- 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.\n- 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." }, { "heading": "Scope and focus", "content": "- Seeks to identify and examine literature on governmentwide performance budgeting systems.\n- 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." }, { "heading": "Key concepts and terminology (as used in the paper)", "content": "- Performance budgeting\n- Outcomes and outputs\n- Formal performance information\n- Resource allocation decision making\n- Governmentwide performance budgeting systems\n- Output-based hospital funding systems" }, { "heading": "Subjects and keywords (verbatim)", "content": "- Subjects: Budget planning and preparation, Economic sectors, Expenditure, Labor, Performance-based budgeting, Public employment, Public financial management (PFM), Public sector, Tax incentives\n- 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" }, { "heading": "Analytical emphasis and approach", "content": "- Emphasizes empirical literature as the basis for assessing efficacy.\n- Uses a targeted case study approach for sectoral analysis (output-based hospital funding systems) rather than a comprehensive sector-by-sector review.\n\nMarc Robinson and Jim Brumby, \"Does Performance Budgeting Work? An Analytical Review of the Empirical Literature\", IMF Working Papers 2005, 210 (2005).\n\n---\n\n Content in this bundle\n\n- wp05210\n - wp05210 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - wp05210 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/bundle-manifest.json)", "Authors: Marc Robinson, Jim Brumby", "Published: November 1, 2005", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451862294.001", "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.", "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.", "Performance budgeting", "Outcomes and outputs", "Formal performance information", "Resource allocation decision making", "Governmentwide performance budgeting systems", "Output-based hospital funding systems", "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", "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.", "**_wp05210**" ], "related": [ { "title": "_wp05210", "role": "document", "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp05210.pdf", "summary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp05210.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp05210.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/index.md", "json": "/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/index.json", "bundleManifest": "/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T12:21:20.161Z" }