2014 Volume 14 Issue 2 Pages 43-59
This paper discusses how results of policy evaluation are utilized in resource allocation process of government, taking examples of Performance Budgeting practices. More specifically, the paper analyzes practices of “Performance-informed Budgeting (PIB),” and information (performance information and other ones) and methodologies utilized there, by discussing domestic and foreign countries’ examples.
Practices of PIB well show that, although performance information of specific program/project on effectiveness (results) is fundamental under “Results-based Management,” and therefore plays important role in making decisions on financial resource allocation, the information itself tells nothing about neither increase nor decrease of budget amount. Much other information such as government and/or department priorities, strategies, and more detailed situation of programs/projects is needed to make decision on resource allocation. In other words, under PIB, budget allocation for specific programs/projects is discussed in the context of “allocative efficiency” for realizing government and/or department-level outcomes.
In implementing PIB, many governments have been introducing “Rating” system that could effectively and efficiently analyze multiple evaluation criteria as a tool for utilizing performance and other information simultaneously in decision-making process. Rating system structurally contains various constraints, however its practical usefulness and effectiveness make it popular among many governments. Practical examples imply rather direct reflection of the rating results into budget decision.
