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.

 

13/9/03

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