The Role of Value Chain Analysis as well as Programs and Performance Budget in Reducing Waste of Public Money (Applied Study)

Abstract

Programs and performance budget represents a sophisticated method of public budget numbers, which includes all allocations to be determined for each job or activity within government entity, which are analyzed according to their needs and costs, and this method can be applied using one of the cost accounting techniques, which is the technique of analyzing the value chain that reduces costs by avoiding activities that do not add value and enhance activities that add value to the economic entity, the current research aims to develop the budget system in government entity by using the budget of programs and performance as a tool for planning and monitoring events and activities, thereby reducing the waste of public money by reducing unnecessary public expenditures. The current research was conducted in Muthanna Cement Laboratory, one of the formations of the Iraqi Ministry of Industry and Minerals, where a model was prepared to balance programs and performance according to the technique of analyzing the value chain, and the activities in the laboratory were divided into major and sub-activities, and after accounting for the total budget costs according to the activities specified for 2019, the activities that achieved the highest percentage of the budget, and activities that achieved the lowest percentage, this helps to draw the attention of Senior management to unjustified and avoidable expenditures for the purpose of reducing the total cost in the future, and therefore the use of programs and performance budget benefits for the purposes of planning and control the use of available resources, the study has reached a set of recommendations, the most important of which is the need to move when preparing budgets in government entity from the traditional budget (balancing items) to programs and performance budget, because it has several advantages, the most prominent of which is its efforts to reduce costs and this in turn limits the waste of Public money, and therefore it is a tool for assessing performance and financial planning in government entity, departments and employees.