Feasibility of Implementation of Performance-based Budgeting in Iran University of Medical Sciences

Background & Objectives: According to the government policies, universities are suggested to change their budgeting system from a programming budgeting system to the performance-based one. This study was conducted to investigate the feasibility of implementation of the performance-based budgeting system in Iran University of Medical Sciences. This cross-sectional descriptive-analytic study was conducted in 2018. The statistical population of the study was all 108 financial staff, budget experts, and accounting experts of Iran University of Medical Sciences and subsidiary colleges. A researcher-made questionnaire with dimensions of ability, discretion, and acceptance was used to collect data. Data were analyzed using Pearson's correlation coefficient by SPSS version 20 software. For implementing performance-based budgeting system, all three criteria (ability, discretion, and acceptance) were at the moderate level. There was an inverse and significant correlation between acceptance variable and age of respondents. There was also an inverse and significant relationship between motivational acceptance variable, age and work experience of respondents (P<0.05). Implementation of performance-based budgeting in Iran University of Medical Sciences requires development of the expertise and skill required to calculate the cost of services provided, standardization of the internal and external organizational procedures, and creating motivations and incentives to start and implement the performance-based budgeting process appropriately.