ABSTRACT
This chapter analyzes how budget offices in developed western countries are approaching spending control. It discusses new criteria of success, future anticipation, budget roles, and budget feedback systems are the main elements. Performance measurement is one of the essential components for the success of this shift towards budget management. Still, performance measurement is seen as necessary and important to promote a budget-management culture in government. Furthermore, incessant competitive lobbying for resources makes interministerial relations disintegrate: departments defend their own interests without paying attention to consequences for overall government finances. The usual proposal to evaluate performance in governments uses the 3Es: economy, efficiency, and effectiveness. Since the 3Es are mainly appropriate for assessing the results of operational tasks or policies under certainty, a new approach and a new role of the central budget office is needed to measure and assess performance in a context of instability.
