Abstract
The Planning-Programming-Budgeting System (PPBS) and other ambitious budget reform efforts of the last fifteen years have been substantial partial failures in virtually every setting where they have been attempted. Inadequate resources, limited time, uncertainly, overambitious schedules, and other factors have contributed to this result. Most importantly, the sophistication of the budgeting system is ultimately limited by the overall quality of management throughout the government. Procedures for rational resource allocation are meaningless unless they are based upon cost-effective program modules and supported by an effective system of accountability for both expenditures and performance. The approach recommended here would integrate performance and management improvement with the modernization of budgeting. It would require capacity building on an agency-by-agency basis, budget reform, and performance monitoring and accountability through a central staff.
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