Question

In: Finance

Describe how government can use performance budgeting to improve government service.

Describe how government can use performance budgeting to improve government service.

Solutions

Expert Solution

A performance budget is a budget that reflects the input of resources and the output of services for each unit of an organisation. This type of budget is commonly used by government bodies to show the link between taxpayer funds and the outcome of services provided by Federal state or local governments.

The Decision Process for performance budget focuses on outputs of services. In other words allocation of funds and resources are based on specific goals agreed upon budget committees and agency heads of services.

The advantages of performance budget in the public sector are an increase in accountability of local authorities to the taxpayers communication to the public about priorities and quantity find particular goals taxpayers want to know where and how their money is being spent and to what end.

The government will normally give permission to reproduce portions of work the use of performance information in the budget cycle to improve the government performance and Service Delivery.

It is a practice of developing budgets based on the relationship between program funding levels and expected results from the program. The process is it tool that program administrators can used to manage cost efficient and effective budgeting.

The government uses the performance budget to improve government services such as 20% increase in production by staff training 50% reduction in infant mortality rate by implementing vaccination centres. Providing necessary benefits to the staff and ground level Government employees so that the level of services in improve. Regular information and training to the Employees and people about the services and the availability of resources.


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