The Factors Used to Create Performance-Based Budgeting: A Research on Turkey

Performance-based budgeting (PBB) is the practice of developing flexible financial management tools to increase the efficiency and productivity of public institutions both in developed and developing countries such as Turkey. It can be seen from international literature gathered as a result of researches that developing countries have come a long way in developing performance-based budgeting activities. In developed economies, successful international institutions such as Organization for Economic Cooperation and Development (OECD) and International Monetary Fund (IMF) promote the implementation of performance-based budgeting for a developing world. Fiscal transparency, medium-term expenditure framework, and other institutional arrangements are factors effective in developing performance-based budgeting. Budget experts regard these factors as important factors, and the view that it is difficult to implement these prevails. Within the context of this theory, the main purpose of this study is to determine the preparation and implementation of performance-based budgeting in public institutions of developing countries such as Turkey, which has an important economy in the world, and to measure the perception levels of employees working in these institutions. As a result of the confirmatory factor analysis (CFA) based on the main findings of the study, goodness-of-fit values of the measurement model were found to be sufficient. Independent t test and one-way ANOVA analyses were conducted to find out the perception levels of the participants in the study. As a result of the analyses, significant differences were found between demographic features and perception levels.