In performance budgeting, resources are allocated based on what?

Study for the Budget Plan and Program Process Exam. Use flashcards and multiple-choice questions with detailed hints. Ace your exam efficiently!

Performance budgeting focuses on allocating resources based on the expected outcomes and effectiveness of programs. This approach emphasizes measuring the results of government expenditures and ensuring that funds are directed toward initiatives that demonstrate a clear impact on performance. By aligning budget decisions with the anticipated outcomes, organizations can improve accountability and make informed decisions that prioritize effective programs over mere historical spending or management preferences. This results in a more strategic allocation of resources, fostering improvement in overall efficiency and public service outcomes, as it encourages a culture of performance assessment and results-driven management.

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