Performance management in the public budgeting process

Performance management is considered to be a continuous systematic procedure in promoting outcomes on the basis of decision making and an ongoing organizational learning which concentrates on liability for performance. The Performance Based Budget is an extremely necessary constituent of a Performance Management System which is effective. Performance Based Budget is a budget presentation which distinctly relates to the objectives of performance to the costs in order to gain levels of performance which have been appointed as the objective. Generally speaking, strategic objectives are connected to their relevant goals regarding long- term and annual matters through performance based budget and they are also linked to activities which are special to costs which help obtain the goals which are set through it. This system was considered by public budget planners to be beneficial since it concentrated on goals and it provided comprehensible information about the programmers being useful and that political choices could be made on the basis of performance. Performance- based budgeting has come forth as an instrument to manage performance and it consolidates resources and goals, budget and performance and it advices the Budget managers to concentrate on economy, being efficient, effective and it also renders performance management as an essential component of budgeting. The present article studies performance management on the state level in the performance- based budgeting.