Performance-Based Budgeting

Paper Type: 
Pages:  3
Wordcount:  635 Words
Date:  2021-03-26

Performance-based budgeting started in early 1990s where then it had fallen out of favuor during the era of budget reduction of then the great recession. Traditionally the lawmakers take into account how well how the previous program is performing so as to decide the allocation that is supposed to be allocated in the coming year (Andrews & Hill, 2003). The program heavily depends on how the state leaders take the idea and how various state agencies take the process and the different aspect that makes them work extra harder so as to produce actual measures.

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The performance-based budgeting effort is usually based on the normative theory which states that the performance have the direct impact on the resource of the public and it highly depends on the magnitude of the narrative approach major factors. One of the major disadvantages of performance-based budgetary is the cost that is between the two divisions (Kong, 2005). Workload, supplies, and the office need can change from of the aspect of the agency to the other which may make the other point to be, more challenging and hence this, may carry out the departmental heads to ensure that they success so as to enable them to have more funding during the next budgeting year. Usually, performance-based budgeting are useful for routine programs, but in case emergency wants to arise then there may be hassles that may require more funding

Another challenge faced by the system that the performance-based budgeting is the use of measurement. Though the budget can be easily initiated and the project carried out across to the completion, the completion can bring out a problem in that some goals can be of vague (Kong, 2005). An organization can in some instance have conflict views on the goals that has been arrived at and which can make it challenging to spot at the end of the project and the turning point for the budget.

Since performance base budgeting is vague, it may in some cases do not indicate a clear and cost framework in any given organizations as to follow. In general performance base budgeting can generate a lot any given extra work for the purpose of analysis and hence they have to concentrate on a target and also perform in a separate cost analysis so as to enable have individual prices and on the rise on the steps that may be involved. This give an extra cost analysis bring confusion on the budget and may drain on funds (Ryu, 2014).

Flexibility is also one of the major advantages in the performance-based budgeting even though it in most instance opens up the door bringing about changes that may make the previous cost analyze and budgets to be obsolete. These are caused by deal in the strategic power in the hand of the public leaders and various programs which do exhibit changes.

My recommendation to the state of Florida is that they should select an option that will enable it to enhance each concern so as to avoid political interference of the program as follows; maintaining some agencies authorities that will help in the transfer of fund between various programs should be chosen as an alternative and be of low efficiency (Ryu.Jay 2014). Performance-based budgeting in the state of Florida has profoundly contributed to enhancement in the accountability and managerial flexibility and hence advancement by correction of various current issues that is needed. The program was previously not fully implemented due to various obstacles in the implementation of the program.


Andrews, M., & Hill, H. (2003). The Impact of Traditional Budgeting Systems on the Effectiveness of Performance-Based Budgeting: A Different Viewpoint on Recent Findings. International Journal of Public Administration, 26(2), 135-155.

Kong, D. (2005). Performance-based budgeting: The US experience. Public Organization Review, 5(2), 91-107.

Ryu., Jay E (2014). The public budgeting and Finance Primer. Armonk. NY.ME sharpe

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Performance-Based Budgeting. (2021, Mar 26). Retrieved from

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