PLANNING PROGRAMMING

AND BUDGETING SYSTEM

(PPBS)
 CONTENTS
 Introduction
 Five basic and sequential functions of an organization
 PPBS:Step 1-Planning
 PPBS:Step 2-Programming
 PPBS:Step 3-Budgeting
 Five Elements of PPBS
 Stages of PPBS
 Advantages and Disadvantages of PPBS
 Conclusion
Introduction
 PPBS is an acronym for Planning Programming and
Budgeting System.
 It is a integrated management system.
 Concerned primarily with decision making processes.
 Purpose-
A. To provide management with a better analytical basis for
making program decision
B. For putting such decision into operation through an
integration of the planning, programming and budgeting
functions.
Five Basic & Sequential Functions of an Organization

Planning P S
Y
S
Evaluation Programming
P T
E
M
Operation Budgeting B
PPBS:Step 1-Planning
 Analytical activity
 Carries out to aid in the selection of an organization’s
objectives
 Examines courses of action in pursuit of objectives
 Poses question whether some particular course of
action would contributes more to the attainment of the
organization’s goal than its various alternatives.
PPBS:Step 2-Programming
 Converts plan into specific action for the organization
 Develops detailed resource requirements
 Develops detailed actions needed to implement the
plans
PPBS:Step 3-Budgeting
 Activity concerned with preparation and justification
of organization’s annual report.
 Function-
Secure sufficient funds to put the program into
operation.
Five elements of PPBS
I. A program structure
II. An approved program document with projection for the
future
III. A decision-making process
IV. The use of analysis for decision-making purposes
V. An information system adapted to the needs of PPBS.
Stages of PPBS
Specification of Objectives

Systemic Analysis

Functional Classification

Organization

Evaluation
 Advantages & Disadvantages Of PPBS

Advantages Disadvantages
 Integrates process of program
 Makes budgeting complex and
formulation, budget allocation
confusing.
and evaluation in a systematic
way.  Problem arises when multiple
objectives of a program that
 Enables decision making towards
involves different agencies.
the achievement of internal
objectives.  Emphasizes physical and
financial resources, not on
 Wise utilization of scarce
qualitative performance.
resources.
 Lack of uniformity.
 Conclusion
 Complexity of an entire PPBS can be minimized by
dividing it into several sub systems.
 Multiple objectives of a given project should be
addressed.
 There must exist one uniform approach to acquire
necessary information.