National budgeting is a detailed and conscious process of matching expenditure and revenue items to achieve specific outputs or outcomes. The major elements of a budget are revenues and expenditures. Therefore, budgeting is fund allocation tool that may be abused or used correctly. When used correctly, a budget helps government deliver efficient and effective services to its citizens and non-citizens alike. Line item budgeting, zero-based budgeting and performance-based budgeting are among different ways of making a national budget. Line and zero-based budgets are traditionally incremental and have been used by many countries for many years. Performance based budgeting is fashionable in the current times because it is outcome oriented and is more likely to responds to needs of the people as compared to other budgetary approaches. In theory, the approach is able to give value for every unit of money spent and is seen as a better approach of allocating funds to various state and government agencies.
Performance based budgeting dates back to 1950’s. However, most governments and states began introducing them into their departments in early 1990’s and some other states are yet to introduce them. It is evident that introduction and implementation of PBB does not only have specific triggers, but it also demands fertile ground for its undertaking. The major triggers of PBB include financial crisis, change in political systems as well as increasing budget deficits. In addition, adequate infrastructure and enhancing reforms must be put in place to allow for its implementation. The study is based on Seychelles, in the African continent. The major aims of the study are to establish whether performance-based budgeting promotes operational efficiencies and quality outcomes as well as whether Seychelles is a fertile ground for introduction of performance-based budgeting. The study is descriptive in nature and would be based on case studies. Data would be collected partly from legit documentations and partly from observations. The study is expected to take a total of about four months, following proposal’s approval. Contents Abstract 2 Contents 4 List of Abbreviations 6 1.0 Introduction 7 1.1 Budgets 9 1.2Seychelles’ Background Information 9 1.3 Rationale of the Study 11 1.4 Aims of the Study 12 1.5 Research Questions 12 2.1 Theoretical Framework 13 2.2 Performance Based Budgeting 13 2.2.1Features of Performance Based Budgeting 14 2.2.2 Performance-Based Budgeting triggers 17 2.2.3 Preconditions for Performance-Based Budgeting 17 2.3 Empirical data: Countries that implemented Performance-Based Budgeting 20 2.3.1 Korea 20 2.3.2 Florida 22 2.3.3 Seychelles 23 2.4 Lessons Learned 24 3.0 Study Methodology 26 3.1 Study Design 26 3.2 Type of Data 26 3.3Data Collection Method 27 3.4 Ethical Consideration 27 3.5Analyzing the Qualitative Data 28 References 29 List of Abbreviations AASHTO -American Association of State Highway and Transportation Officials BB -British Broadcasting Corporation CIA - Central Intelligence Agency CS -Cambridge Systematics, DGAACS -Department of General Assembly Affairs and Conference Services FHA -Federal Highway Administration GDP - Gross Domestic Product GOS -Government of Seychelles IMF -International Monetary Fund MBO - management by objectives MEFP -Introduction of Memorandum of Economic and financial Programme NCHRP -National Cooperative Highway Research Program, NRC -National Research Council OECD –Organisation for Economic Co-operation and Development OPPAGA -Office of Program Policy Analysis and Government Accountability PEFA -Public Expenditure and Financial Accountability Assessment PPBS -planning programming- budgeting system SNP -Seychelles National Party SPPF -Seychelles People’s progressive Front TRB -Transportation Research Board, 1.0 Introduction Introduction of performance-based budgeting system (PBB) in any given country is based on country’