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Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program. The performance-based budgeting process is a tool that program administrators can use to manage more cost-efficient and effective budgeting outlays. ==Introduction== Today, when the management of money is more important than ever for public and private entities, budgeting plays an enormous role in controlling operations efficiently and effectively. Budgeting in itself is a familiar process to even the smallest economic unit – the household - but it needs to be divided into two different classes: budgeting for public entities and private entities. This differentiation is important because public bodies need to go through many processes before moving into the budget execution phase and post-execution analyses; furthermore, the entire process involves the collaboration of different bodies throughout the government. This collaboration is not only for budget preparation, negotiation and approval processes, but also for the spending approval after the whole budget allocation is finalized. Compared to private sector, it is cumbersome. Another factor is the increasing awareness of the policies of the World Bank in pursuit of restructuring the budgeting and spending processes of developing nations via the World Bank Treasury Reference Model. This new model has led the public sector to understand, digest and adopt a new style. According to this new budgeting methodology, traditional methods of analyzing and utilizing budget figures are insufficient. In traditional terms, organizations start building up their long-term plans and break those plans into annual budgets that are formed as forecasts. At the end of the year, budget figures are compared with actual results and a simple actual-budget variance comparison is calculated. Since the analysis is simple, this analysis lacks any sophistication in terms of adjusting similar budget items for forthcoming periods by increasing or decreasing the expenditure estimates. Basically, variance results are generally used for revising monetary amounts for the next planning and budgeting cycle, and also for very simple departmental performance tracking. This new approach to budget analysis and utilization is many steps ahead of traditional methods. As an example, a governmental project to enhance the social welfare of children in a remote area can help explain the performance-oriented approach. For such projects, which are generally composed of long-term plans, governments decide on objectives and the activities that are required to be accomplished to achieve them. Practical ways of enhancing social welfare of children in a rural area might include increasing the job skills of parents in the area. In order to achieve such an objective, the government may plan to establish schooling infrastructures in various locations, complete with the necessary equipment, and further plan to assign trainers to those schools for implementing the educational programs. All these activities have a cost aspect and, at this point, long-term plans are broken down into annual budgets that incorporate the monetary figures. Once the long-term plans are accomplished, the traditional way to gauge the effectiveness of this whole project would be to assess the gap between the budget and the actual money spent. However, with the new budgeting approach, the questions to answer are tougher: : *Did we really succeed in enhancing the social welfare of children? : *Did this project cost what we expected? : *Have we done what we should have done in enhancing the social welfare of children? Peter van der Knaap from the Ministry of Finance in the Netherlands 〔Peter van der Knaap, Performance management and policy evaluation in the Netherlands: towards and integrated approach, Ministry of Finance, The Hague〕 suggests: “The general purpose of the proposals is to make budget documents and, hence, the budgetary process more policy-oriented by presenting information on (intended and achieved) policy objectives, policy measures or instruments, and their costs.” Furthermore, van der Knaap explains that this type of budgeting has the following major performance indicators: : *(the quantity, quality, and costs of) products and services (output) produced by government or government services in order to achieve certain effects, and; : *the intended effects of those measures (outcome). Within this kind of a planning and budgeting setup, the lack of reliable information on the effects of policies emerges as a serious issue. Therefore, it is important to approach the planning and budgeting cycle in a holistic and integrated way, with collaboration across the areas of policy design, performance measures definition and policy evaluation. From a conceptual point of view, performance-based budgeting systems are a sub-set of what are known as 'outcomes systems'. Outcomes systems are any systems designed to identify, prioritize, measure, attribute and/or hold parties to account for outcomes. The technical principles for developing and implementing sound performance-based budgeting systems as a type of outcomes system are described in outcomes theory. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Performance-based budgeting」の詳細全文を読む スポンサード リンク
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