HomeContact Site map   Google    www    iipm think tank
   
   
Home Scrutiny Publications Under Cover Mus'ings  
 

Home > Scrutiny > It focuses more on performance

  
   
     
   Case Studies  
       
  Marketing    
  Human Resource    
  Information Technology    
  Finance    
  Strategy    
       
 
     
   Industries  
       
  Steel    
  Glass    
  Banking    
  Prophylactic    
  Auto    
  Hospitality    
  Energy    
       
 
     
   Other links  
       
  IIPM    
  Planman Consulting    
  Planman Marcom    
  Planman Technologies    
  Daily Indian Media    
  Planman Financial    
  4P's Business and Marketing    
  Business and Economy    
  The Daily Indian    
  The Sunday Indian    
  Arindam Chaudhuri    
  GIDF    
       
 
  
         
Scrutiny
  
It focuses more on performance
Budget process governed by 3Es - economy, efficiency & effectiveness
06/03/2008

One more form of budget, which has great significance is performance based budgeting. It is a unique and most advanced way of budgeting, in which the ultimate goal of policy makers becomes a set of performance factors – and developing strategies to achieve them. There are three pillars of this form of budgeting, which are often called 3E! Economy: focusing on cost of inputs with appropriate quality and quantity of financial, human resources. Efficiency: evaluating the relation between output and input. Effectiveness: what is the extent to which goals have been achieved. The speciality of performance budgeting is that it sets up targets to be achieved, comparing the country with the international arena using a few key performance indicators (KPIs) to relate performance with available resources; added to this is the performance scorecard approach, where KPIs are examined and the connections between causes and effects are established.

The world’s most successful countries like Australia, New Zealand, Singapore, Malaysia, UK, France, US, Canada etc. use quality/efficiency/effectiveness indicators to prepare government budgets. Most importantly, international institutions like the World Bank and IMF provide technical and training support to countries that want to adopt performance budgeting. For India, the largest democratic nation, it is high time we incorporate such a model. India then can aptly compare itself globally with key indicators, the way most developed countries have done so. Setting key social, economical and political achievements, it can frame strategies at a micro-level to attain them. In the present conventional budget, where there is no link between budget appropriations and outputs delivered, India can identify its desired outcome by preparing appropriate approaches incorporating a path to progress towards the budget.

By:- B&E
Back

  
 
 
       
Home | Scrutiny | Publications | About us | Contact us
Copyright @2010 iipm think tank. All rights reserved.