The impact of performance budgeting on state budget outcomes

Abstract

Little empirical analysis has occurred of the influence of performance-based budgeting on appropriation decision-making or budget outcomes, and most research has focused on the perceptions of budget officials. This research empirically tests to what extent the implementation of performance-based budgeting has had an impact on the actual allocation of resources in the form of Constant Per Capita Expenditures in the states. A pooled cross-sectional analysis is used to evaluate the time series encompassing before and after implementation as a means of determining the impact of performance budgeting on state budgeting outcomes as revealed in expenditure patterns of the states. Results indicate that the implementation of performance budgeting has a statistically significant and positive effect on budget outcomes in the states as measured by constant per capita expenditures.

Citation

Klase, K.A. and Dougherty, M.J. (2008), "The impact of performance budgeting on state budget outcomes", Journal of Public Budgeting, Accounting & Financial Management, Vol. 20 No. 3, pp. 277-298. https://doi.org/10.1108/JPBAFM-20-03-2008-B001