ABSTRACT
Target-based budgeting (TBB) has become an increasingly common approach to the budgeting, particularly for local governments. It is a method of budgeting that identifies overall expenditures for an agency or unit based on the estimated revenue available to the government. It allows control to be imposed at the executive or legislative levels while allowing decentralization and flexibility at lower levels of the organization. Target-based budgeting is particularly useful when state and local governments have needs to control spending but also face turbulent and unpredictable demands for services.
