Stages in the performance budgeting

The stages in the performance budgeting is enumerated as follows:

1) Establishment of goals objectives and policies: data collection review data recognition of constraints assumption and inputs.

2) Development of programmer for short and long terms: consideration of alternatives formulation of programmer for the achievement of goals and objectives selection of programmer on a given criteria and recognition of supporting programmer.

3) Specification of objectives for each programmer.

4) Broad classification of expenditure according to function such as education health irrigation. Social welfare etc. each of the function is then classified into programmer and sub classified into activities or projects.

5) Allocation of resources: fixation of operational targets measurement of performance and work load data allocation of annual outlays reports on physical and financial aspects including pert/CPM charts.

6) Establishing suitable methods for measurement of work as follows:

Productivity factor = number of man days required to produce one unit.

Rural electrification = number of new connections given.

7) Fixation of work target for each programmer/activity.

8) Execution of the budget: assignment of specific responsibilities achievement of targets within time and cost elements (to avoid time cost over runs).

9) Appraisal and evaluation: development of indices of achievement reporting and monitoring of programmer adjustment a systematic process of evaluation and evaluation for the purposes of control as well as updating the budget.