Outcome and Performance Budgets 58‌

The concepts are part of result-oriented budgeting. While outcome budget is presented by different departments and divisions of a ministry or the government, the performance budget is presented by the Ministry of Finance on behalf of the government. Both go for ‘quantitative’ as well as ‘qualitative’ progress reports of the performance. The outcome budget is a micro level process while performance budget is a macro-level process in

budgeting. There are many outcome budgets in any one performance budget.

The basic objective of such budgeting is to bring in transparency and thereby making the government more and more responsible to the House and the public. Naturally, they bring in prudence and optimisation elements in public spending (also see entry ‘Outcome Budget’ in Chapter 23).