Performance-Based Budgeting: Best Practices’ Evidence and Preconditions for Emerging Markets

Authors

  • Irina Dokalskaya Ph.D., Postdoctoral researcher Department of Legal Sciences, University of Udine

DOI:

https://doi.org/10.14666/2194-7759-5-1-005

Keywords:

Performance-based budgeting, Budgetary planning, Emerging markets, Management of expenditures

Abstract

Today, a number of countries, including emerging markets, trying to improve their budgetary process by applying the model of budgeting for results, or performance-based budgeting (PBB), which, in one form or another, has been an important theme of public expenditure management for a long time. It is obvious that the full potential of these measures as the means of improving of public expenditures effectiveness is impossible to reveal in a short time, as the world experience evidences. Considering the difficulties, associated with the transition to such a fundamentally new method of public expenditure management, this article analyses how different countries are adapting the PBB technologies, depending on the potential of each country, its priorities and culture. The article, by utilizing a conceptual lens, synthesises the strengths and weaknesses of the PBB’s mechanisms, and explores the best practices’ experience and the opportunities which could be learned for those countries who are on the stage of PBB' implementation.

 

References

Andrews M (2004) Authority, acceptance, ability and performance-based budgeting reforms. The International Journal of Public Sector Management, Vol.17 (4):332-344.

Andrews M, Hill H (2003) The Impact of Traditional Budgeting Systems on the Effectiveness of Performance-based Budgeting: A Different Viewpoint on Recent Findings. International Journal of Public Administration, Vol.26 (2): 135-155.

Berman E, Wang XH (2000) Performance Measurement in U.S. Countries: Capacity of ReforM Public Administration Review, Vol.65 (5):409-420.

Burkhead J (1956) Government Budgeting. New York, NY: John Willey & Sons.

Carter K (1994) The Performance Budget Revisited A Report on State Budget ReforM Legislative Finance Paper No. 91. Denver, CO: National Conference of State Legislatures.

Clark YD, Swain G (2006) Implementation of the principles of performance management in the public administration sector: the boundary between the real and the surreal (proposals for administrative reform in Canada) The economic policy, Vol.3:103-128.

Cope GH (1987) Local Government Budgeting and Productivity: Friends or Foes? Public Productivity Review, Vol.10 (3): pp.45-57.

Cornett C (1998) California’s performance budgeting pilot project: A view from the legislative. Cal-Tax Digest, February.

Diamond J (2003) Performance Budgeting: Managing the Reform Process. IMF Working Paper, International Monetary Fund, pp.3-28.

Diamond J (2005) Establishing a Performance Management Framework for Government. IMF Working Paper,International Monetary Fund, pp.3-28.

Dokalskaya I (2014) Performance-based budgeting: between discourse and effective management. Doctoral Thesis, Università degli Studi di Udine.

Federal Law of 08.05.2010 № 83-FL (as amended on 07.05.2013) On Amendments to Certain Legislative Acts of the Russian Federation in connection with the improvement of the legal status of state (municipal) institutions.

Forsythe D (2001) Quicker, better, cheaper? Managing performance in American government. Edited by Dall Forsythe. Rockefeller Institute Press, pp.119-121.

Friedman M (1997) A guide to developing and using performance measures in results-based budgeting Baltimore, MD: The Finance Project, pp.1-34.

Gamykin V (2001) Innovations of the budget process: Performance-based budgeting http://www.nwapa.spb.ru.

Garsombke HP, Schrad J (1999) Performance measurement systems: Results from a city and state survey. Government Finance Review, February.

Gilmour JB, Lewis D (2006) Does Performance Budgeting Work? An Examination of the Office of Management and Budget’s PART Scores. Public Administration Review, 66(5): 742-752.

Grizzle GA (1987) Linking Performance to Funding Decisions: What Is the Budgeter’s Roles? Public Productivity Review, Vol.10 (3): 33-44.

Hager G, Hobson A (2001) Performance-based Budgeting: Concepts and Examples. Research Report No.302. Legislative Research Commission, pp.3-69.

Hatry HP (1999) Performance Measurement. Getting Results. The Urban Institute Press.

Hood C (1995) The New Public Management” in the 1980s: Variations on a theme. Accounting Organization and Society, Vol.20 (2-3):93-109.

Joyce PG (1999) Performance-Based Budgeting, in Roy Meyers, ed, Handbook of Government Budgeting (SanFrancisco: Jossey-Bass), pp. 597-619.

Kelly JM (2011) Performance Budgeting for State and Local Government / by Janet M Kelly and William C Rivenbark – 2nd ed.

Kett D (2005) The Global Public Management Revolution. The Brooking Institution, pp.1-101.

Kordbache M (2007) Performance-based Budgeting. The Journal of Planning and Budgeting, 11 (6): pp.3-31.

Lavrov AM (2003) We should be able to measure results. Center for Fiscal PolicY http://www.fpcenter.ru

Lavrov AM (2004) Medium-term budgeting for results: International Experience and Russian Prospects. Finance (Moscow), Vol.3:9-14

Lee, J Yun-jie, Wang XH (2009) Assessing the Impact of Performance-based Budgeting: A Comparative Analysis across the United States, Taiwan, China. Public Administration Review, December 2009, Special Issue, pp.60-66.

Lee RD Jr. (1997) A Quarter Century of State Budgeting Practices. Public Administration Review 57(2): 133-140.

Melkers J, Willoughby K (1998) The State of the States: Performance-Based Budgeting Requirements in 47 out of 50. Public Administration Review 58(1): pp. 66-73

Melkers JE, Willoughby KG (2001) Budgeters’ Views of State Performance-budgeting Systems: Distinctions across Branches,” Public Administration Review Vol. 61(1): 54-64.

Meneguzzo M (2001) Managerialita, innovazione e governance. La pubblica amministrazione verso il 2000. Arache editrice, pp.422.

Mikesell J (1999) Fiscal administration: Analysis and applications for the public sector. (5th ed). Fort Worth, TX: Harcourt Brace College Publishers.

Moynihan D (2005) What Do We Talk About When We Talk About Performance? Dialogue Theory and Performance Budgeting. Journal of Public Administration Research and Theory, JPART 16:151-168, pp.151-168.

Moscher FC (1975) American Public Administration. Past, Present, Future. Seventh Printing, 1994. Copyright 1975 by The Maxwell School of Citizenship and Public Affairs and the National Association of Schools of Public Affairs and Administration, pp.291.

OECD (2002) Overview of Results-Focused Management and Budgeting in OECD Member Countries. PUMA/SBO (2002)1. OECD Publishing: Paris.

OECD (2005) Modernizing Government: The Way Forward. OECD Publishing: Paris.

OECD (2007) OECD Journal on Budgeting, Vol.7 (4): 3-162.

OECD (2008) Performance Budgeting: A user’s guide. OECD Publishing: Paris.

On budgetary strategy of the Russian Federation for the period up to 2023: Decision of the Council of Federation of 26.11.2008 № 443-SF.

Ongaro E (2009) Public management reform and modernization. Trajectories of administrative change in Italy,France, Greece, Portugal and Spain. Edward Elgar, 2009, pp.316.

Osborne D, Gaebler T (1992) Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector. Plume. New York.

Pattison S, Samuels N (2002) Trends and Issues in Performance Based Budgeting. Spectrum: The Journal of State Government. Spring, pp. 12-13.

Performance-based budgeting: Analysis of international experience and capabilities of its distribution in Russia. Fund “Institute for Urban Economics”, Moscow, 2004, pp.3-64

Performance-based budgeting: International experience and the possibilities of its application in Russia (2002) Center for Fiscal Policy, Consulting Group. Edited by Center for Fiscal Policy with the support of the U.S. Agency for International Development, Moscow, pp.1-59

Perrin B (2002) Implementing the Vision: Addressing Challenges to Results-Focused Management and Budgeting. OECD, Paris, pp.1-50.

Poister TH, McGowan RP (1984) The Use of Management Tools in Municipal Government: A National Survey. Public Administration Review Vol.44 (3), pp.215-223.

Poister TH, Streib G (1999) Performance Measurement in Municipal Government: Assessing the State of the Practice. Public Administration Review Vol.59 (4):325-335.

Poister TH, Streib G (2005) Elements of Strategic Planning and Management in Municipal Governments: Status after Two Decades. Public Administration Review Vol.65 (1):45-56.

Poocharoen OO, Ingraham P (2003)“Integration of Management Systems in Government Performance Project, Paths to Performance in State and Local Government: A Final Assessment from the Maxwell School of Citizenship and Public Affairs (Syracuse: Maxwell School)

Robinson M (2007) Public Sector Performance Budgeting: Linking Funding to Results. IMF Publications.

Robinson M, Brumby J (2005) Does Performance Budgeting Work? An Analytical Review of the Empirical Literature. IMF Working Paper, International Monetary Fund, pp.3-75.

Robinson M (2009) Performance Budgeting Models and Mechanisms. In Robinson M (ed.), Performance Budgeting: Linking Funding and Results, Palgrave Macmillan Ltd, New York, 1-18.

Russian Federation Government Resolution on May 22, 2005 №249 On measures to improve the effectiveness of budget expenditures

Scheers B, Sterck M, Bouckaert G (2005) Lessons from Australian and British Reforms in Results-Oriented Financial Management. OECD Journal of Budgeting 5 (2): 133-62.

Schick A (1966) Planning-Programming-Budgeting-System: A SymposiuM Public Administration Review 26:pp. 243-258.

Schick A (1966) The Road to PPB: The Stages of Budget Reform. Public Administration Review 26(4): 243-258.

Shah A (1998) Balance, Accountability, Responsiveness: Lessons about Decentralization. The World Bank Policy Research Working Paper Series, Paper 2021, World Bank, Washington, DC.

Sharp T (2001) Linking performance measurement to budgeting. Government Finance Review, Vol.17:15-18.

Snell R, Hayes K (1993) Performance budgeting and the states. Presented to the Nebraska Legislative Appropriations Committee, London, NB

Tandberg E (2009) Performance Budgeting Equals Soviet-style Central Planning? Public Financial Management Blog.

Tat-Kei Ho A (2011) PBB in American Local Governments: It’s More than a Management Tool. Public Administration Review, May/June, pp.391-401.

Wang X (2000) Performance Measurement in Budgeting: A study of Country Governments. Public Budgeting & Finance. Fall 2000, pp.102-118.

Willoughby KG, Melkers JE (2005) Models of Performance-Measurement Use in Local Governments: Understanding Budgeting, Communication, Lasting Effects. Public Administration Review Vol.65 (2): 180-190.

Young RD 2003 (11) Performance-Based Budget Systems. USC Institute for Public Service and Policy Research – Public Policy & Practice, pp.12-24.

Ushakov VA (2008) Problems and perspectives for the implementation of results-oriented budgeting in the practice of the management of the state and municipal finances. Management Issues Vol.1 (2).

Zhigalov DV, Perzov LV, Chalaya UU Using the tools of performance-based budgeting in the practice of municipal administration. Association “Council of municipalities” of Khabarovsk Krai, http://cmo.khabkrai.ru/.

Published

2016-06-24

Issue

Section

Articles