Performance budgeting is a budgeting technique under which an entity or the government crafts the budget by adopting certain basic principles and formats. In performance budgeting, budget purposes, the inputs and the corresponding outputs are shown in systematic manner. Basically, the budget shows the purposes of the expenditure, the costs of the “programs” proposed for those purposes, and outputs under each programme. Performance budget details in terms of purposes, funds needed and output to be achieved are prepared by Ministries, Departments etc.
