ABSTRACT
Many countries have adopted and developed performance budgeting (PB) systems under quite different institutional and national settings. This chapter examines why PB has become a popular worldwide reform. It analyses the dynamics of PB reform and the diverse institutional factors that influence its development and success. Having looked at the worldwide diffusion of PB reform and PB’s institutional aspirations and reform dynamics, the chapter analyses the relevant factors that influence the successful implementation of the reform. There is a vast amount of empirical evidence that shows the outcome of problematic PB implementation. The important institutional factors identified as impacting the reform are: the degree and longevity of political support, the availability of analytic staff, familiarity with strategic planning and performance measurement and the role and power of the central budget authority within government. The chapter concludes by suggesting a new conceptualization of institutional factors that are likely to impact PB reform.
