Performance-Based Budgeting and Accountability in Public Sector

In this study, the impact of participatory approach in performance-based budgeting (PBB) on accountability in the public sector was investigated. The performance-based budgeting provides a basis for more accountability in resources usage. This research is an applied survey. The statistical population of the study was Iranian experts and managers of management and planning organization (MPO) which 80 people were selected with using simple random sampling method. Measurement tool was a questionnaire. For hypothesis test, the SEM (Structural Equation Modeling) of Confirmatory Factor Analysis (CFA) with Partial Least Squares (PLS) method by Smart-PLS software was conducted. The result indicates that the existing of performance-based budgeting infrastructure in the public sector does not affect the financial accountability, while it has a negative impact on the operational accountability. The establishment of the infrastructure performance-based budgeting and team working approach in budgeting process would lead to improvement of government accountability in the public sector.