Question

What is the difference between Outcome and Performance Budget? Explain with points.

Answer 1

$\bf\large\underline\pink{Answer:-}$

PERFORMANCE BUDGET: a performance budget reflects the goal/ objective of the organization and spells out its performance targets... OUTCOME BUDGET: the outcome budget is a progress card on what various ministers and departments have done with the outlay announced in the outcome budget....

Answer 2

Outcome Budget basically represents a formal report reflecting the work performance of the various government ministries and departments pertaining to previous annual national budget.

Performance Budget shows the amount ans capacity of capital and factors or inputs and the output level for any public sector business organisation or company.

Explanation:

Major difference between Outcome Budget and Performance Budget:-

• Outcome budget normally evaluates whether the funds and finances allocated for various economic purposes in the national budget are being properly and effectively used or utilized based on their intended  use.On the other hand,performance budget examines the performance of various public sector organisations such public schools and colleges,hospitals,public utility offices and so forth.
• Outcome budget examines the proper allocation and utilization of government funds as stipulated under the national budget but performance budget shows whether the taxpayer money or funds have been effectively used in the public sector organisations.
• Outcome budget analyzes the subsequent performance of the government bodies and departments with respect to the national budget allocation.On the other hand,performance budget denotes the performance evaluation of the major public service organisations with regards to the proper utilization of the taxpayer's money.
• Outcome budget shows the connection between the actual budget allocation by the central government and its practical execution whereas,performance budget indicates the linkage between the allocation of taxpayer's money for various public development and infrastructural projects and its actual implementation reflected by the performances of various public organisations and bodies.