PERFORMANCE-BASED

BUDGETING
An Approach Towards Accountable Public
Expenditure
Change does not
necessarily assure progress,
but progress is never
possible without change.
the state of the municipality
Did you know.
As per BLGF 2010 Fiscal Report, among the 33 municipalities of
Batangas, San Pascual ranks 8
th
highest income in Batangas,
Line Item Budgeting is arguably the simplest form of budgeting, this
approach links the inputs of the system to the system. These budgets
typically appear in the form of accounting documents that express minimal
information regarding purpose or an explicit object within the system.
POINTS OF
VIEW
A budget tells us what we can't afford,
but it doesn't keep us from buying it.

- William Feather
METHODS OF BUDGETING
Line Item Budgeting is arguably the simplest form of
budgeting, this approach links the inputs of the system to the
system. These budgets typically appear in the form of
accounting documents that express minimal information
regarding purpose or an explicit object within the system.
Program Budgeting takes a normative approach to budgeting
in that decision making--allocating resources--is determined by
the funding of one program instead of another based on what
that program offers. This approach quickly lends itself to the
PPBS budgeting approach.
METHODS OF BUDGETING
Priority Based Budgeting is a response to poor economic conditions. As opposed to incremental budgeting,
where resource allocation is determined based on marginal shifts in costs, priority based budgeting fixes the
amount of governmental resources and then allocates resources across the various programs. The programs
receive their allocation based on their priority; priorities may include safe and secure communities, health,
education, and community development among others. Outcome assessment then determines the efficacy of
the programs. Although this approach is pro-democratic, critics suggest the administration of this process is
extremely difficult.

Performance Based Budgeting attempts to solve decision making problems based on a programs
ability to convert inputs to outputs and/or use inputs to affect certain outcomes. Performance may be
judged by a certain program's ability to meet certain objectives that contribute to a more abstract
goal as calculated by that program's ability to use resources (or inputs) efficiently--by linking inputs
to outputs--and/or effectively--by linking inputs to outcomes. A decision making--or allocation of
scarce resources--problem is solved by determining which project maximizes efficiency and efficacy.

Zero-based budgeting is a response to an incremental decision making process whereby the budget of a given
fiscal year (FY) is largely decided upon by the existing budget of FY-1. In contrast to incrementalism, the
allocation of scarce resources--funding--is determined from a zero-sum accounting method. In government,
each function of a department's section proposes certain objectives that relate to some goal the section could
achieve if allocated x pesos.
timeline
1991
birth of the Local Government Code
delineation and devolution of national government
services to local counterparts
linear-item budgeting adopted
1999
CSC provided the organization models for LGUs

ORGANIZATIONAL PERFORMANCE
An ounce of performance is worth pounds of promises.

Mae West

NORTH (SUPERIOR, HIGHER UNIT/OFFICE)
SOUTH (SUBORDINATES, LOWER
UNIT/OFFICE)
EAST (CO-EMPLOYEE, OTHER UNITS/DEPTS
WEST (
individual performance