Q25. Who needs PPBS?
The
Program and Performance Budgeting System is both a planning and budgeting
tool.
q
As a budgeting tool, PPBS seeks to bring
about a better match between resources allocated and planned levels of
performance. These planned levels of
performance justify the allocation.
Additionally, in-depth evaluations of performance provide findings to
enable a ministry and the Ministry of Finance decide an appropriate level of
funding in the future for a particular program.
For budgeting purposes, therefore, PPBS is useful to:
o
Program and activity managers to propose and justify
a budget based on what they expect to achieve in the coming fiscal year;
o
Staff of the Finance Sector and senior
management to enable them to submit an overall ministry budget proposal to the
Ministry of Finance based on the review of the various program budget
submissions;
o
Ministry of Finance to decide whether the
budget proposed is a fair reflection of the expected levels of performance;
o
Parliament to review performance
achieved in the past and to vote on the budget based on performance;
o
Public to better understand what is being achieved by
government programs for the budget allocated; and
o
To all of the above parties to monitor whether the
targeted performance has been achieved and whether resources have been adequate
to achieve those performance targets.
q
As a management tool, PPBS is useful to
program and activity managers to:
q
clarify program objectives, clients, problems
being solved and the strategies to be undertaken to solve those problems;
q
plan for performance and monitor its
achievement;
q
carry out mid-term adjustments to expected
levels of performance based on progress achieved hitherto;
q
to challenge staff to achieve ambitious yet realistic
levels of performance through performance targeting;
q
to improve program performance by following up
on inconsistent performance achievement;
q
to improve program
efficiency and effectiveness through an in-depth evaluation of program
performance.
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