## Does Performance Budgeting Work? An Analytical Review of the Empirical Literature

_IMF Working Papers, November 1, 2005_

## Source details

**Canonical URL:** [Does Performance Budgeting Work? An Analytical Review of the Empirical Literature](https://www.imf.org/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321)

## Other formats

- [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)

## 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).*

---

## Content in this bundle

- **_wp05210**
  - [_wp05210 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp05210.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp05210 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp05210.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-performance-budgeting-work-an-analytical-review-of-the-empirical-literature-18321_