Authority, acceptance, ability and performance‐based budgeting reforms

Abstract

Performance‐based budgeting (PBB) is a prominent reform around the world, and has been in prominence in the USA for over a decade now. Evidence presented in this article suggests, however, that the reform is commonly implemented in a limited fashion. This raises the questions, “Why do few states adopt PBB meaningfully?” and “What needs to be done to ensure meaningful adoption?”. In addressing these questions with reference to case studies of state performance‐based budgeting, this article suggests that a three‐factor model is useful in thinking about PBB implementation. In this model authority, acceptance and ability intersect to determine the “reform space” a government has for PBB. In most governments this reform space seems rather constrained.

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