Abstract

The main aim of this article is to explore how performance-based budgeting has an effect on primary health care service delivery in the Eastern Cape. This article assessed the performance-based budgeting system in the Eastern Cape Department of Health in an attempt to advocate for effective and efficient health service delivery. The Eastern Cape Province is succumbing to insufficient funding at the provincial level and this has a clear-cut reflection on the administration of services within respective departments. The article is premised on a constructivist paradigm that adopts a qualitative approach where document analysis was employed for collecting data. The Eastern Cape Province is succumbing to insufficient funding at the provincial level and this has a clear-cut reflection on the administration of services within respective departments. The article employed the Public Choice Theory and the Concept of New Public Management. Three main findings emerged from the article of the crippled funds in the province, the human resources crisis, poor public finance management, and shortage of health equipment. Data were analyzed using thematic analysis to examine the distinctive themes and sub-themes identified from within the reviewed literature. Recommendations were thus given based on the discussed and derived themes to ensure that there is an appropriate budgeting system to ensure efficient and effective provision of health care services in the Eastern Cape Department of Health.

Highlights

  • Performance based budgeting is a policy mechanism that enables decision-makers to systematically account for the results achieved with public funds (Dunning, 2014; DeVries & Nemec, 2019)

  • Performance based budgeting improves performance accountability, Alawia, Rahman & Prastiwi, (2021), define it as a way the government measures its performance in carrying out its duties as a public oriented organization

  • The article was guided by the Public choice Theory and the concept of New Public Management

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Summary

Introduction

Performance based budgeting is a policy mechanism that enables decision-makers to systematically account for the results achieved with public funds (Dunning, 2014; DeVries & Nemec, 2019). A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. This type of budget is commonly used by government bodies and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state, or local governments (National Treasury, 2021). Performance based budgeting improves performance accountability, Alawia, Rahman & Prastiwi, (2021), define it as a way the government measures its performance in carrying out its duties as a public oriented organization It is important for performance-based budgeting to be part of the health planning in the South African health sector

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