As a key component of a World Bank‐financed Administrative Reform Programme, the Government of Jamaica began a phased implementation of performance Budgeting in 1985–86. Under the leadership of the Finance Ministry's Budget Division. Just under 70 per cent of the Government's 50 appropriation units will have applied performance budgeting during the 1988/89 financial year. The remaining units are scheduled for conversion in 1989–90. Expressing the Government's determination to establish productivity‐oriented managerial environments throughout its administrative service, 1,000 front line supervisors have been assigned the basic responsibility for the formulation and execution of performance budgets. These “cost centre managers”, most of whom had no responsibility for budgeting in the traditional system, are going through a management skills development programme, embracing classroom instruction, practice and on‐the‐job technical assistance. Significant institutional changes are also involved including: (1) the reorientation of the Budget Division, (2) the development of Ministry budget functions, (3) the reorganisation of accounting practices to provide required support for performance budgeting, (4) the development of management services support for cost centre managers and, (5) the establishment of productivity‐oriented training programmes.