In general, a public budget comprises of four setting. Firstly, a political factor allots the limited public resources to the social and economic needs. Secondly, it is a managerial and administrative factor as it strategises the various ways in which the public will be provided with their needs through setting appropriate programs and services, their costs, their evaluation and implementation methodologies (Bamishigbin, 2012). Thirdly, it is an economical factor as it determines the various ways the town shall engage in growth and development. Lastly, it is an accounting factor as it holds the town`s top executive accountable for the funds allocated to them by the government for expenditure (Blidesel, Popa, & Pop, n.d.). Every budget has two significant elements, capital and recurrent estimates. For the recurrent budget, it comprises of the recurrent revenues and expenditures (Bamishigbin, 2012). This is the segment of the city`s budget that is comprised of the budgeted cash for running the government operations and consumptions. Capital budget is the section of the city`s budget, which consists of capital receipt and expenditure. This is the capital translated into development programs and services to city dwellers (Blidesel, Popa, & Pop, n.d.). There are various forms of budget. For instance, line item budget is the traditional type of budget. Performance budgeting requires a performance as a measure of budget item. The programmed budget focuses on achievement of each program provided to the users (Bamishigbin, 2012). Zero budgeting determines the cost benefit; the value for money to be invested in a given activity before making decision. This paper discusses the problems associated with the old budgetary method employed in Jakarta City. It discusses the challenges the city leaders faces and it proposes solutions to the problems. With the adoption of the performance-based budget, the city can change the face of its budgeting process. The performance based budgeting will ensure the previous unclear funds allocation will show their allocation in budget. This is one way through which the city shifts from politicians’ dominance for the city`s benefit into an approachable, clear, and answerable public spending management mechanism. Problems at Jakarta City Budget The budgetary account of Jakarta City features constricted and comprehensive items of expenses. The budget items include items such as motor vehicles, clerical workers or realms of papers needed in the city`s agencies and they do not refer to the aim of spending (Bamishigbin, 2012). They use this as their basis from which the audit team will determine the city agencies’ compliance to the budget requirement. The city`s budgetary format is of the below form. Expenditure item salaries materials other expenses total Last year Current year Next year Problems Associated with this Budget The city`s board is unable to utilize 98 percent of the 2013 Jakarta city`s budget. The main reason behind this is difficulty in acquiring land for development, auctioning problem, government policies, and inadequate technology for facilitating electronic cataloguing to ensure timely service and good delivery. Consequently, the unused budget resulting from this is estimated will reach Rp 7.28 trillion, which is equivalent to 15 percent of 2014 proposed budget of Rp 50.1 trillions. The cited causes to increase in the budget include the new needs of infrastructure and innovation to the public service.