Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

Evolution of performance-based budgeting in Iran and the United States of America

Document Type : Review Article

Author
Gholamreza Ahmadi
Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran
10.22034/psab.2025.219282
Abstract
Performance-based budgeting, aimed at improving budgeting processes, efficiency, transparency, accountability, and resource allocation based on performance in order to maximize the social benefits of programs has undergone numerous changes and developments under the influence of the New Public Management approach. Iran is among the countries where multiple legal requirements emphasize the implementation of a performance-based budgeting system. This paper presents the current status of this budgeting system in Iran and the experience of the United States, with the goal of identifying factors that impact the reform and implementation of this budgeting system. The experience of the aforementioned country shows that improving information infrastructure and cost systems in organizations, reforming the structure of macro-strategic plans and the process of developing operational plans for executive agencies, developing and reforming organizational performance evaluation processes and evaluating the performance of managers, and matching the legal requirements with the conditions and limitations in implementation are factors that play an important and effective role in removing obstacles and facilitating the implementation process of this budgeting system in the country.
Keywords
Performance-based budgeting
Approaches to performance-based budgeting
Barriers to the implementation of performance-based budgeting
New Public Management

Subjects

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  • Receive Date 17 January 2025
  • Revise Date 13 March 2025
  • Accept Date 06 April 2025