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PERFORMANCE-BASED

BUDGETINGAn Approach Towards Accountable Public

Expenditure

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Change does notnecessarily assure progress,

but progress is never

possible without change.

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the state of the municipality

Did you know.

As per BLGF 2010 Fiscal Report, among the 33 municipalities ofBatangas, San Pascual ranks 8thhighest income in Batangas,

Line Item Budgetingis arguably the simplest form of budgeting, thisapproach links the inputs of the system to the system. These budgetstypically appear in the form of accounting documents that express minimalinformation regarding purpose or an explicit object within the system.

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POINTS OF

VIEWA budget tells us what we can't afford,but it doesn't keep us from buying it.

- William Feather

http://www.brainyquote.com/quotes/quotes/w/williamfea130795.htmlhttp://www.brainyquote.com/quotes/quotes/w/williamfea130795.html

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METHODS OF BUDGETING

Line Item Budgetingis arguably the simplest form ofbudgeting, this approach links the inputs of the system to the

system. These budgets typically appear in the form ofaccounting documents that express minimal informationregarding purpose or an explicit object within the system.

Program Budgetingtakes a normative approach to budgeting

in that decision making--allocating resources--is determined bythe funding of one program instead of another based on whatthat program offers. This approach quickly lends itself to thePPBS budgeting approach.

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METHODS OF BUDGETING

Priority Based Budgetingis a response to poor economic conditions. As opposed to incremental budgeting,where resource allocation is determined based on marginal shifts in costs, priority based budgeting fixes theamount of governmental resources and then allocates resources across the various programs. The programsreceive their allocation based on their priority; priorities may include safe and secure communities, health,

education, and community development among others. Outcome assessment then determines the efficacy ofthe programs. Although this approach is pro-democratic, critics suggest the administration of this process isextremely difficult.

Performance Based Budgetingattempts to solve decision making problems based on a programsability to convert inputs to outputs and/or use inputs to affect certain outcomes. Performance may bejudged by a certain program's ability to meet certain objectives that contribute to a more abstractgoal as calculated by that program's ability to use resources (or inputs) efficiently--by linking inputsto outputs--and/or effectively--by linking inputs to outcomes. A decision making--or allocation ofscarce resources--problem is solved by determining which project maximizes efficiency and efficacy.

Zero-based budgetingis a response to an incremental decision making process whereby the budget of a givenfiscal year (FY) is largely decided upon by the existing budget of FY-1. In contrast to incrementalism, theallocation of scarce resources--funding--is determined from a zero-sum accounting method. In government,each function of a department's section proposes certain objectives that relate to some goal the section couldachieve if allocated xpesos.

http://en.wikipedia.org/wiki/Performance_Based_Budgetinghttp://en.wikipedia.org/wiki/Zero-based_budgetinghttp://en.wikipedia.org/wiki/Incrementalismhttp://en.wikipedia.org/wiki/Incrementalismhttp://en.wikipedia.org/wiki/Zero-based_budgetinghttp://en.wikipedia.org/wiki/Zero-based_budgetinghttp://en.wikipedia.org/wiki/Zero-based_budgetinghttp://en.wikipedia.org/wiki/Performance_Based_Budgeting

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timeline

1991

birth of the Local Government Code

delineation and devolution of national government

services to local counterparts

linear-item budgeting adopted

1999

CSC provided the organization models for LGUs

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ORGANIZATIONAL PERFORMANCEAn ounce of performance is worth pounds of promises.

Mae West

http://www.brainyquote.com/quotes/quotes/m/maewest164516.htmlhttp://www.brainyquote.com/quotes/quotes/m/maewest164516.html

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NORTH (SUPERIOR, HIGHER UNIT/OFFICE)

SOUTH (SUBORDINATES, LOWER

UNIT/OFFICE)

EAST (CO-EMPLOYEE, OTHER UNITS/DEPTSWEST (

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individual performance