Performance budgeting resuscitated: why is it still inviable?

Abstract

Performance budgeting had been tried once and failed. Is there any reason to believe that the new performance budgeting will work? After reviewing existing studies on performance budgeting, the paper proposes that two obstacles continue to undermine its success. They are the poor quality of performance measures and their rare acceptance by budgetary decisionmakers. Unfortunately, these two impediments result from the generic defect of performance budgeting: i.e., its attempt at both comprehensiveness and rationality. The paper concludes by suggesting ways by which performance measures can be better utilized.

Citation

Lu, H. (1996), "Performance budgeting resuscitated: why is it still inviable?", Journal of Public Budgeting, Accounting & Financial Management, Vol. 10 No. 2, pp. 151-172. https://doi.org/10.1108/JPBAFM-10-02-1998-B001