Performance Based Budgeting for State and Local Government

Course Objectives
The objectives of this course are to ensure that all the participants:
• Appreciate the importance of effective financial planning and public sector funds management
• Gain a fresh perspective of performance management and improving efficiency
• Learn the concept of performance-based budgets
• Comprehend principles of implementation of PBB
• Set targets and Key Performance Indicators
• Recognise various types of budgets
• Understand components of the budget
• Align the planning process with the overall strategic plan and fiscal policy
• Learn to analyse financial results
Course Outline
Introduction to Public Sector Finance
• Principles of Public Sector Financial Management
• Budget Cycle
• Fiscal Policy
• Revenue Management
Types of Budgets
• Line-Item Budget
• Programme Budget
• Performance-based Budget
• Zero based Budget
Definitions of PBB Terms
• Input
• Output
• Effectiveness
• Efficiency
• Workload
• Advantages & Disadvantages of PBB
Principles for Implementation of PBB
• Ensure Accountability
• Focus on City Priorities
• Increased Transparency
• Increased Community Involvement
Setting Key Performance Indicators
• Setting Key Objectives
• Alignment with Current Budgeting Cycle
• Developing Guidelines for Agencies
• Budget Monitoring using a defined matrix
Financial and Non-financial Reporting
• Public Sector Financial Accounts
• Components of Financial Statements
• IPSAS Reporting Requirements
• Reports on Key performance Indicators
Development / Capital Expenditure Decisions
• Investment Appraisal Techniques
• Principles of Discounted Cash flow Analysis
• Outsourcing Services: Objectives and Decision Criteria
• Public- Private Partnership
Best Practices of PBB – OECD
• Reflects Interests of Key Stakeholders
• Aligns Expenditure with the Strategic Goals
• Incorporates Flexibility
• Investment in Human Resources
• Facilitates Systematic Oversight
• Complements Spending Reviews
• Encourages Performance- oriented Behaviour

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:

1ST BATCH:        17th – 20th Feb, 2026       

2ND BATCH:       9th – 12th Jun, 2026 

3RD BATCH:       6th – 9th Oct, 2026