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Effectuating Performance-Based Budgeting Takes Time

  • Juraj NemecEmail author
  • Michiel S. de Vries
Chapter
Part of the Governance and Public Management book series (GPM)

Abstract

Traditional budgeting shows where the money was spent, but it does not give any idea as to the results of this spending. Performance-based budgeting is expected to address this gap. However, positive expectations connected to it have not been fully met in practice because of the implementation problems indicated in this book. Many dilemmas and imperfections can and do emerge in the practice of performance-based budgeting and critics are right in saying that it has negative side effects. Stakeholders should be aware of the hurdles, but also do all they can to overcome those hurdles. Governments experimenting with performance-based budgeting that ignore the obstacles on the way cannot improve the system. When governments acknowledge the obstacles, dilemmas and paradoxes, that could be the starting point toward optimizing such systems.

Keywords

Traditional budgeting Implementation problems Dilemmas and imperfections Overcome those hurdles 

References

  1. Allen, Richard, and Tommasi Daniel, eds. 2001. Managing Public Expenditure. A Reference Book for Transition Countries. Paris: OECD Publishing.Google Scholar
  2. Lu, Elaine Yi, Zachary Mohr, and Alfred Tat-Kei Ho. 2015. Taking Stock: Assessing and Improving Performance Budgeting Theory and Practice. Public Performance & Management Review 38 (3): 426–458.  https://doi.org/10.1080/15309576.2015.1006470.CrossRefGoogle Scholar
  3. OECD. 2014. Budgeting Practices and Procedures in OECD Countries. Paris: OECD Publishing.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of Public Economics, Faculty of Economics and AdministrationMasaryk UniversityBrnoCzech Republic
  2. 2.Department of Public Administration and Institute of Management ResearchRadboud University NijmegenNijmegenThe Netherlands

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