This article helps policy-makers and managers understand why politicians tend to make only limited instrumental use of performance information in the budget process. In order to encourage the use of ...performance information to improve budgetary decisions, performance measures should be more relevant for elected officials, politicians should be involved in developing performance measures and receive more extensive analytical support.
Wagner's law indicates a positive long-run equilibrium relationship between per capita income growth and the relative size of the public sector. Accordingly, the main purpose of this article is to ...verify Wagner's theory and the law on operational budgeting reforms on public spending and educational, health, and military priorities. To meet these ends, the data of 13 Asian selected countries during 2000-2018 periods and the Feasible Generalized Least Squares (FGLS) technique were used. The results show that by increase in GDP per capita, the trend and structure of public expenditures, educational and health priorities will be increasing and significant; But in the military program, this effect is negative and significant. This validates the Wagner's law in public spending, and educational and health priorities. In addition, the impact of performance-based budget Reform has led to changes in the budget structure and trend of public spending, but in the educational, health, and military priorities, the pertaining significance is not confirmed. In other words, due to the lack of change in the structure, trend of expenditures and the pattern of budget allocation, the effect of the implementation of this law was temporary and not permanent.
Using evidence from Austria, Ireland and Portugal, the authors show that, although the experience of a fiscal crisis can act as a useful trigger for adopting performance budgeting reforms, the ...context of fiscal stress and austerity does not offer a fertile ground for implementing reforms. In addition, it can undermine the use of performance information in budgetary decision-making. This article will help policy-makers and practitioners to develop realistic expectations about the impacts of performance budgeting in a climate of austerity and fiscal stress.
According to the meta-analysis on performance budgeting theory and practice, the relationship between citizens' role and performance-based budgeting is an important but under-researched topic. ...Missing in our understanding of the determinants of performance budgeting is an examination of how citizen participation fosters the usage of performance information in the local budgetary process. This research is intended to understand the role of citizens to use performance budgeting, particularly for strategic planning and performance evaluation. To examine the research question, this study hypothesizes that local governments with a commitment to citizen participation tend to use performance budgeting. The results allow confirming that the hypothesis is supported, and to clarify our knowledge of the role of citizen input in government fiscal decisions.
Abstract
In most countries implementing structural transformations in their higher education systems, a key goal of policymakers is to tie the amount of public funding to university performance. The ...present article analyses the Russian performance-based funding (PBF) reform to provide a quasi-experimental assessment of its effects on university performance. To evaluate the causal effect of PBF on university performance, we define the treatment and control groups by distinguishing universities on the basis of changes in their performance-based allocations and estimate the causal effect of the redistribution of public funds between universities as a result of PBF. Results indicate that the performance of universities is indeed affected by the extra funding generated by the reform, although heterogeneity is also at play. In the short term, the new policy has had an impact on the average national exam scores of enrollees showing that it has had encouraged universities to be more selective.
Numerous studies suggest that performance budgeting has limited impact on budget aggregates and on legislative decision making. For that reason, a growing number of scholars now argue for increased ...attention on how performance budgeting reforms influence decision-making processes within line ministries and during budget execution. In this study, we compare the cases of four line ministries from a government with a longstanding tradition of performance budgeting. We find that the use of performance information is marginal during budget formulation and approval. In contrast, the evidence shows that officials at line ministries use performance information extensively during budget execution. The use of performance information differs between our four cases and those differences are explained by a set of variables that include executive leadership involvement, informational system capacity, and intrinsic organizational factors such as the size of the organizations and the homogeneity of their outputs.
This study contributes to our understanding of public performance with original research on Earned Value Management (EVM), a practice used for managing cost and schedule performance for capital ...projects throughout execution. Recently, EVM has emerged in some states as part of their performance management strategy for major Information Technology acquisitions but research has yet to study implementation. Overall, results indicate that EVM can support proactive cost and schedule management and help achieve performance objectives but that it is not fully embedded into work routines. Findings also illustrate that successful implementation is contingent on several organizational, human capital, and policy variables.
Performance budgeting is a contentious area in public administration literature. While performance budgeting systems are widely adopted with promises of better fiscal outcomes, public administration ...theory implies that this practice may generate social waste. Most empirical research that finds null or negative effects of performance budgeting focuses only on how performance budgeting affects resource allocations and cost savings. This study aims to fill the gap in the literature by conducting a quantitative panel-data analysis to determine whether the inclusion of performance information in municipal budgets contributes to better fiscal outcomes. An ordered logit regression analysis in the context of 125 large U.S. cities over a 12-year span (2008-2019) demonstrates that performance budgeting is positively associated with municipal fiscal health.
This article contributes to the debate on the incorporation of performance information in European local government budgets. At the core is the development of an analytical model for comparing ...efforts of performance budgeting (PB). Evidence in ten cases indicates that performance structures and the span of performance differ, that performance indicators are far from always measuring outcomes or outputs, and that future and past performance figures are often absent. Nevertheless similar learning trajectories do exist. Possible explanations for the variation involve the varying degrees of reform implementation, experience with PB and prevailing institutional arrangements.
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