Performance Based Budgeting

Performance-based budgeting goes beyond just providing program performance information to help allocate resources for budgeting. Performance-based budgeting is critical in developing a performance based budget with a clear understanding on what the budget should focus on. Considering the criticality of applying vast amount of resources by governments, performance-based budgeting is being largely used by them.

The Problem

Governments are increasingly being pressurized by the need to judiciously deploy resources while increasing performance of these resources. Revenues are another constraint that they need to grapple with. Traditional budgets do not show how funds allocated will translate to achievement of specific goals. It also does not show the correlation between funds invested and the degree of results achieved. It is hence imperative for government and public organizations to implement the principles of Activity-based budgeting and move to a performance-based budgeting practice for financial management.

2PI’s Value Differentiator

2PI Solutions has worked with governments and public bodies to partner in their quest to implement performance-based budgeting. Based on the legislations that are in effect in the respective states 2PI will work with you to help comply with these legislations. We do understand that performance-based budgeting is at a nascent stage in my organizations. It is hence that we will work with you to create a roadmap that will enable a smooth transition from basic performance-based budgeting to a system that applies all the principles of Activity-based budgeting and thereby enable Performance-based budgeting to be the norm across the organization.