Performance Based Budgeting: Opportunities and Considerations

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Executive Summary

It is difficult to say with certainty when and where an idea as broad as performance based budgeting began. Many date its origins to the post World War II period in the US when the Hoover Commission, a federal body of public administration experts, sought to reform the way executive branch agencies measured and reported department outcomes. During that period the progressive faith that rational, empirical decision making in public administration could trump power politics was alive and well. That faith certainly has been tempered by history. Today support for performance based approaches to budgeting are more modest. They come out of the perennial desire among administrators and legislators to strengthen the link between results and resource allocation and the public's demand for more governmental accountability.

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