resources committed. Costs and benefits of levels of activity are givenscores and plotted on a graph – these can be varied to allow theimplications for service delivery to be evaluated. While it can be aneffective tool, CIPFA suggests that the focus is largely at service level andis more difficult to apply across services. Also, it is time consuming andexpertise with the associated software is required across organizations.
c.Planning Programming Budgeting
This system is primarily associated with corporate management andidentifies alternative policies, the implications of their adoption andprovides for their control. The key difference from traditional approachesis that it relates cost estimates to programs using a cross-cutting methodrather than attributing costs on a traditional departmental basis.
The main aim of this approach is to connect performance information withthe allocation and management of resources. Performance-basedbudgets need to contain information on the following elements:1.inputs (measured in monetary terms);2.outputs (units of output);3.efficiency/productivity data (cost per activity);4.effectiveness information (level of goal achievement).
Similar to zero-based budgeting, the performance-based approach shouldbegin at a policy level with the organization developing goals and explicitpolicy objectives. Managers then must develop relevant performancemeasures which will track the achievement of these objectives.
Participatory budgeting is based on the following principles:
1.citizens’ groups have as much power as possible in thedecision-making process.2.representation must be fair and equitable.3.appropriate training is given to participatory groups. This may require a dedicated council team.