Performance budgeting

Performance budgeting:

The procedure of fund allotment of governments in different countries has been modified from traditional expenditure budgeting to latest forms of rationalistic budgeting, like performance budgeting, program budgeting and zero based budgeting.

Beneath performance budgeting, Different activities of the government are recognized in the budget both in financial and physical terms. This is essential to ascertain the relationship among input and output and to assess the performance in association to cost.

Performance budgeting is imagined as a system of presenting public expenses in terms of distinguishable divisions like government functions, programs, activities and projects; like presentation would reveal the cost of running the government.

Beneath this method, funds are granted for carrying out particular amount of work recognized under a specific division. A cost-benefit approach is used that facilitates meaningful and focused allotment of funds. This technique of budget method needed in the procedure of allocation of funds.

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