THE RISK ASSOCIATED WITH THE
REPLACEMENT OF TRADITIONAL BUDGET
WITH PERFORMANCE BUDGETING IN THE
PUBLIC FINANCE SECTOR MANAGEMENT Cover Image

THE RISK ASSOCIATED WITH THE REPLACEMENT OF TRADITIONAL BUDGET WITH PERFORMANCE BUDGETING IN THE PUBLIC FINANCE SECTOR MANAGEMENT
THE RISK ASSOCIATED WITH THE REPLACEMENT OF TRADITIONAL BUDGET WITH PERFORMANCE BUDGETING IN THE PUBLIC FINANCE SECTOR MANAGEMENT

Author(s): Izabela Emerling, Magdalena Wójcik-Jurkiewicz
Subject(s): Economy, National Economy, Business Economy / Management, Public Finances
Published by: Zilinska univerzita v Ziline, Fakulta prevádzky a ekonomiky dopravy a spojov, Katedra ekonomiky
Keywords: performance budgeting; traditional budget; public expenditure; risk; management in the public finance sector;

Summary/Abstract: Performance budgeting has been functioning in Poland for almost twelve yearsnow and it still can be said that it is a challenge for the entire sector. So far many countrieshave attempted to implement it, proposing a transition from the traditional budget to theperformance budgeting. It should be noted that this also causes a change in thinking whichdoes not come too easily, especially in case of managing public administration. In addition,the performance budgeting is a key element of the management system. The purpose of thispaper is to show that the replacement of traditional budget with performance budgeting isdesirable in public administration. It would lead to the improvement of the quality of statemanagement and as a tool it would allow to effectively monitor and evaluate the results andefficiency of budgetary funds administrators. The performance budgeting is a tool for publicgovernance management. The applied research methods are the method of critical analysis ofliterature studies and the analysis of the advantages of drawing up a task-based budget inrelation to the traditional budget in managing the public finances unit. These methods will bepresented in the context of their suitability to demonstrate that it is necessary to convert thetraditional budget into a budget in a task setting, in public administration. The basichypothesis is the assumption that the use of a task-based budget will lead to improvement inthe quality of state management, and as a tool it will allow effective monitoring andevaluation of the results and effectiveness of budget part managers.

  • Issue Year: 12/2018
  • Issue No: 1
  • Page Range: 55-63
  • Page Count: 9
  • Language: English