A performance budget reflects the goal/objectives of the organization and spells out its performance targets.
These targets are sought to be achieved through a strategy. Unit costs are associated with the strategy and allocations are accordingly made for achievement of the objectives.
A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes.
However, performance budgeting has a limitation – it is not easy to arrive at standard unit costs especially in social programmes, which require a multi-pronged approach.
Zero-based Budgeting
The basic purpose of ZBB is phasing out of programmes/activities, ....
