Abstract
PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized combination of manpower, equipment, and support under certain resource constraints. Since the 1960s, PPBE has continued to make revisions and reforms with increasing changes of political, institutional environment. There were three important reforms, Laird reform, The Goldwater-Nichols Defense Restructuring Act, and Rumsfeld Reform. Since Rumsfeld's reform, the adjustment and development of PPBE is mainly to improve the efficiency of resource. Although budget management has its own emphasis in different periods, last development of PPBE is mainly flexibility, conciseness, and efficiency improvement. This paper reviews the evolution process and the latest development by historical analysis. After more than 60 years of evolution and development, PPBE continues to play an important strategic management function in the US Department of Defense. The study found that PPBE is more challenging for large organizations to maintain normal operation and improve adaptability and responsiveness in uncertain environments. In the 21st century of conflict and uncertainty, it would be long-time challenge for PPBE to trade off increasing defense demand and decreasing financial constraints. Therefore, it is worthy of further studying how to improve the budget capability of PPBE participants in the future.
Highlights
Planning Programming Budgeting Execution, Planning-Planning-Budget-Execution System (PPBE), as the main tool for defense strategy planning and resources allocation in the United States, has a wide range of influence in the field of defense budgeting
Most of the research on PPBE focused on the 1960s and 1970s, when the US federal government carried out the reform in an all-round way, and its evaluation was mixed
This paper aims to lay the foundation and provide reference for the reform of government budgeting management by analyzing the experience, progress, challenges, and threats of American Journal of Theoretical and Applied Business 2020; 6(4): 98-105 the United States Department of Defense
Summary
Planning Programming Budgeting Execution, PPBE, as the main tool for defense strategy planning and resources allocation in the United States, has a wide range of influence in the field of defense budgeting. The Predecessor of PPBE, PPBS, was first implemented in the US Department of Defense in the 1960s and later changed to PPBE, which is still in use today It has shaped the modern US defense budgeting system, and led the US public budgeting reform. Scholars analyzed the management model and operational mechanism of PPBE after transformation by using the management cycle of "Planning, Execution, Checking and Action (PDCA)" [6]. This management paradigm provides a classic model for government management.
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