The Effect of Performance Information on Actual Budgeting Allocation

Budgeting and Planning
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Budgeting and Planning
Article Title: “The Effect of Performance Information on Actual Budgeting Allocation: The Role of Policy Type.”
Authors: Hosung Sohn, Dongsook Han, and Kwang Bin Bae.
Publication Date: 2022
Link: https://doi.org/10.1080/15309576.2022.2062014.
Summary
The primary purpose of the article was to examine how performance information contributes to the changes in actual budget allocation in congressional appropriations and government proposals. In particular, performance budgeting has significantly improved expenditure control and efficiency in the public industry. When combined with managerial flexibility, it can bolster accountability by enabling managers to know how they can deliver quality public services. Performance information influences budget processes and allocations. For example, the outcomes of the Program Assessment Rating Tool (PART). By using Korea PART (KPART), it is clear that performance information contributes to making effective budget decisions (Sohn, Han, & Bae, 2022). For instance, KPART helps government agencies to run financial expenditure programs, resulting in proper evaluations. Each agency can answer questions based on management, performance, and planning. PART evaluations rely on four indices, including design and purpose, management, accountability, and strategic planning. The most significant thing about a performance budgeting system entails controlling expenditures in the public sector and promoting the efficiency of the expenditure programs. In that light, managers get flexibility in managing the programs in exchange for increased accountability. Based on the United States of America (USA) General Accounting Office (GAO), performance budgeting ref...