ABSTRACT
Understanding the importance of institutional differences and the changing contexts of performance budgeting (PB) reforms among countries, this chapter provides an overall assessment of PB reform design and impacts among Organization for Economic Cooperation and Development (OECD) countries. It assesses the trend of development, points out the key obstacles to the reform, and suggests some key lessons for policymakers and reform administrators. Major difference across OECD countries is the comprehensiveness of PB coverage of government spending and the alignment of the performance architecture with the budget structure. Reform experiences of various OECD countries also show diverse goals and expected impacts of the reform. A PB system is expected to achieve the first goal by more transparent reporting of budgetary allocation and spending outcomes. Less visible reform benefit is the claim that PB encourages result-oriented behaviors and culture within agencies. As shown in the US and other countries’ reform experiences, an effective accounting system is fundamental to PB reform.
