PERFORMANCE BUDGETING - Coursework Example

PERFORMANCE BUDGETING . Introduction Performance budget reflects the s input of resources against the output of services of allthe departments of the local governments. The main attribute of this system is that it measures the links between the funds allocated to a given department and the outcomes of these services. Most performance budgets places emphasis on employees’ commitment to provide quality results to the satisfaction of the public.Performance based budgeting has great characteristics that has made it quite suitable in public sector budgeting for local governments.

Firstly, this method provides a major purpose for which funds allocation is done and sets measurable objectives. This makes it easy and efficient to evaluate the performance of the concerned managers at job delivery. Performance budgeting focuses on the changes in the funding of the budget rather than the approximation fronted by the previous budget cycles. This makes it more flexible and appropriate for public budgeting whose demands are dynamic. It offers flexibility for the relocation of budgets when needs arises.

In addition to these, it identifies agencies and programs that seek similar goals hence drawing inter-relationships to the legislature attentions and enabling a possibility of increased awareness and budgets to the local governments. Finally, performance budgeting provides a platform for rewarding achievement and imposing of sanctions in the case of poor performance.This attributes makes it suitable for public sector budgeting at large including the federal government. However, it will present major challenges to the federal government.

The efficiency ratings used in this model are rudimentary because they measure bureaucratic activity quantitatively rather than qualitatively. This shortcoming means the federal government could by focusing on the quantity of the services rather than its quality. Moreover not all bureaucratic activities are easily quantifiable.ConclusionPerformance budgeting system is very handy when evaluating the output of the managers after budget allocations. It provides an insight on how the allocated budget was spent, its impact and effects.

This model of accounting is hence suitable for public budgeting where integrity and service delivery is paramount.ReferenceLee, R.D. & Johnson, RW., Joyce, P.G. (2008). Public budgeting systems, 8th edition. Sudbury, MA: Jones and Bartlett.Marc, R., (2007) .Performance Budgeting, Linking Funding Results, 1st edition. New York, Palgrave MacMillan.