Performance budgeting has been attempted at the local level in recent years. Address the issues of performance budgeting while answering the following questions: What attributes of performance budgeting make it particularly suitable to local government budgeting? Will the same attributes be as useful at the federal level?
Performance budgeting has become a very popular choice at the local level for two main reasons - 1) accountability, and 2) transparency. When we discuss performance budgeting, what we're focusing on is the fact that each organizational unit or segment is self-reporting. We therefore automatically have a greater accountability. This turns into a situation where the public and really all of the users of the local entity's financial statements are able to trace the exact source of ...
This solution explains which attributes of performance budgeting make it particularly suitable to local government budgeting, and if the same attributes are as useful at the federal level.