Performance Budgeting as a Tool for University Procedures and Programs Improvement, Emphasizing on ABC System

Considering the ratification of Higher Education Ministrys organizational structure law and Irans Fifth Development Plan, it becomes a must to make changes in universities management system. The most crucial part of such changes is related to universities financial system. In the current budgetary system of the higher education institutes, budgeting is done according to various factors such as numbers of students, faculty members and staff. In other terms, allocation of expenditures is done according to the volume criteria; hence, no distinction is deemed among the expenses of different fields of study. Moreover, the expenditures of some courses are financed through extra resources of other courses; this, in turn, requires improvement of financial resources management and supervision. This may lead to more efficiency and effectiveness in the universities. The only way to materialize these goals is to establish performance budgeting system in higher education institutes.This paper tries to explain basic concepts and implementation issues of performance budgeting in higher education institutes and focuses on performance budgeting in universities according to ABC system. The statistical population is Gilan Provincial Payam-Nour University studied through analytical descriptive research method. The results indicate that establishing performance budgeting system would help to improve programs and activities in the universities and paves the way for effectiveness and efficiency of costs. Moreover, focusing on activities, ABC system reveals the traditional shortcomings of the higher education institutes; it will also improves affairs through providing systematic information on cost prices, productivity, efficiency and effectiveness