Question

What do you understand by outcome budget? How is it different from performance budget? Explain.(250 words)?

Answer 1

Performance Budget is a practice of preparing the budget ... the productivity of the different operations in an organization. ... What is Performance Budget?

Answer 2

Answer:

• It is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.
• It is a means to develop a linkage between the money spent by a government and the results which follow.
• An interesting feature of outcome based budgeting is that the outcomes of programmes are measured not just in terms of Rupees but also in terms of physical units like Kilowatt of energy produced or tonnes of steel produced. Also outcomes are expressed in terms of qualitative targets and achievements to make the technique more comprehensive.
• Then move on to discuss the procedure for outcome-based budgeting.