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Analysis Of Critical Control Points Of Alternative Decisions On The Choice Of Performance Based Budgeting System: The Analysis Of The Practices In Turkey’S Public Institutions

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Author Info
Tugen, Kamil () (Faculty of Economics and Administrative Sciences at Dokuz Eylul University)
Akdeniz, H. Ahmet () (Faculty of Economics and Administrative Sciences at Dokuz Eylul University)
Egeli, Haluk () (Faculty of Economics and Administrative Sciences at Dokuz Eylül University)
Aksarayli, Mehmet () (Faculty of Economics and Administrative Sciences at Dokuz Eylül University)
Ozen, Ahmet () (Faculty of Economics and Administrative Sciences at Dokuz Eylül University)
Abstract

Performance-Based Budgeting (PBB) System is one of the latest techniques achieved in the development process of modern budgeting systems. The system basically requires public institutions to prepare budgets in accordance with market-focused administration approach. The system is based on allocating the budget in order to give the most convenient subsidy for the institutional operations to enable the effective use of resources. Institutional activities are assessed according to pre-determined performance criteria and the way to reach the target performance level is called forth. In this study, first, critical control points are determined to enable the state to reach PBB by providing transition between budgeting systems. After critical control points are formed, a diagram is drawn to show the effectiveness of PBB and the factors that may affect the processing of the system negatively or positively are explained. After that, operational levels of institutions according to the critical control points are obtained as the result of a situational analysis of PBB in various public institutions in Turkey. Moreover, public institutions in the study are classified from a functional point of view and comparative analyses are made according to operational levels. Regarding the result of the analyses some suggestions on adapting the PBB systems to the public institutions are made. We concluded that the system cannot be applied effectively without completing all the steps towards PBB.

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File URL: http://www.ipe.ro/rjef/rjef3_08/rjef3_08_5.pdf
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Publisher Info
Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): 5 (2008)
Issue (Month): 3 (September)
Pages: 80-99
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Handle: RePEc:rjr:romjef:v:5:y:2008:i:3:p:80-99

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Related research
Keywords: Budgeting; Strategic Planning; Performance Evaluation; Performance Criterion; Performance-based Budgeting; Optimization;

Find related papers by JEL classification:
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Statistical Decision Theory; Operations Research

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