Managing Public Services Essay Example | Topics and Well Written Essays - 3000 words

Managing Public Services - Essay Example Performance-based budgeting is used by countries that wish to minimise the complexities and costs. Countries with limited resources and capacities such as low income countries also use the approach. The structure of the paper begins with the introduction, followed by definition and lastly the scope. After the definition of the terms, the paper focuses on one practical example of a situation that performance budgeting presents. Afterwards, the difficulties of budgeting will be discussed. The last part of the paper analyses the concepts obtained from the design, and whether they can be advanced: and if yes, what are the basics for that. Definition and scope Performance-based budgeting is the process of developing budgets based on programme funding levels. It looks into the anticipated results from the programme with a sole aim of minimizing the costs while administering effective budgeting outlines (Caiden, 1994). In terms of decisions, the budget centres on output of resources more th an the inputs. Over the years, development of different models of performance based budgeting using different mechanisms have led to better fund linking and utilization (Caiden, 1994). These models are of two types, the very sophisticated ones and those that use the basics only to advance their functions (Drucker, 1974). One may confuse the definition by thinking that performance budget depends broadly on performance. ... It reflects on both the given levels of funding and the expected results (Berry & Flowers, 1999). One result obtained from a true performance based budget is an indication of how the dollars budgeted turns into results. The result should be evidence based, reflecting general chain of events and results and not scientific assumptions (Grizzle & Pettijohn, 2002). Under this, the most effective governmental performance based budgets outlays how money is spent on the day to day activities. The link between funding of the projects and how they are going to yield towards expected results has to be emphasized. The effects that the results will pose on the intended purpose have to be highlighted (Grizzle & Pettijohn, 2002). In order to distinguish a line item budget from a program-based budget, the best way is to consider the fundamentals (Easterling, 1999). The line budget shows items in usage, for example, how each dollar is spent. On the other hand, the performance budget reflects what ea ch dollar budgeted will accomplish by a way of evidence in achieved results, for example, reduction in accidents, an improvement in health facilities, and an increase in customer satisfaction (Romzek & Dubnick, 1987). The other objective achieved via a performance-based budget is a reflection of activity performed, for example, process a grant application, inspect a worksite, and review a compliance activity (Wildavsky, 1992). This budgeting was introduced to many systems because of the value of accountability and transparency it holds. Many countries, organizations, and companies are using it in different sectors as a part of the new reforms that the world is experiencing. Most governments are aiming for management for results in