Result based-budgeting in public sector: Literature Review

Abstract

In several countries, central government has taken several steps toward recognizing the relevance of performance measurement and management systems and understanding the role of budgeting as a planning and control tool.

According to (Eschborn 2006), the important role of PFM lies in a modern, development-oriented state: goal-oriented fiscal policy and transparent budget management are the basis for public services aimed at achieving the Sustainable Development Goals (SDGs) in developing countries. Both of these fields fall under the notion of accountability. In other words, financial and managerial accountability.

In this sense, the present research shows to what extent results-based budgeting plays a role in ensuring financial and managerial accountability in the public sector.

We establish a reading grid for the literature studied. this is a systematic literature review. The references listed were selected via the renowned database, using the keywords "RBB" AND ("Result Based Budgeting" OR "Performance Budgeting")". The decision to retain the reference in question was based on the quality of the sources and the explanation of the facts.

The findings of the study show that it is about measuring achievements and outcomes against the allocated budget through performance monitoring (Robinson and Brumby 2005). RBB links allocated funds to measurable results (OECD 2008). Indeed, the public budget is still influenced by a traditional, input-oriented approach, enriched with performance information; performance measures and indicators are presented in several documents but hardly serve as a basis for budget decisions.

OECD countries have recently integrated the performance information into the budget process to improve decision making, moving away from the simple amount allocated to focus on budget achievements (OECD 2008). This operation supports the notion of result based budgeting, which contributes to its conceptualization and future evolution.

Indeed, there is a close link between performance and fiscal sustainability objectives. The fiscal consolidation efforts undertaken by many countries since the late 1980s have underlined the importance of ensuring that scarce public resources are spent on services that are important to the community, and that they are produced efficiently (Robinson and al.2005).

Keywords : Public financial management-accountability-budget transparency-financial effectiveness and efficiency-financial accountability-managerial accountability

Classification JEL : M41

Paper type : Theoretical Research