Assessing the Effectiveness of Performance-Based Budgeting in Achieving Public Sector Financial Goals

Abstract

This article examines the effectiveness of performance-based budgeting (PBB) in achieving financial goals within the public sector. Utilizing a qualitative research approach, the study conducts a comprehensive literature review to analyze existing frameworks, case studies, and empirical evidence related to PBB implementation across various governmental contexts. The findings reveal that PBB can enhance financial accountability, improve resource allocation, and foster a results-oriented culture in public administration. However, the effectiveness of PBB is contingent upon several factors, including the political environment, organizational capacity, and stakeholder engagement. Challenges such as resistance to change, inadequate training, and insufficient data systems are identified as significant barriers to successful implementation. The article highlights best practices and lessons learned from jurisdictions that have effectively employed PBB, providing valuable insights for policymakers and public administrators. Ultimately, this study contributes to the ongoing discourse on public financial management by offering a nuanced understanding of how PBB can be leveraged to meet financial objectives while promoting transparency and efficiency in government operations.