appointed, which recommended the Federal Government to adhere to the principles of
budgeting, performance-based budgeting, “shaping the budget based on executed
functions, activities and projects” [1, p. 88]. For over fifty years in the United States,
in practice, various modifications to the ROB concept have been used: Planning -
Programming - Budgeting System (PPBS) in 1962-1971, Management by Objectives
in 1972-1975, Zero-Based Budgeting (1977-1981), the so-called “new budgeting”
(new performance budgeting) since the 1990’s [2, 3, 5].
It is believed that the most complete result-oriented budgeting is introduced in
Australia, New Zealand, the United Kingdom, the Netherlands. In Sweden, an
experiment on the implementation of management for goals and results began in the
first half of the 1960’s. In 1988-1990 the result-oriented budgeting was implemented
in full for the entire public sector, while continuing to grow. Programs for switching to
the results-oriented budgeting system were adopted in countries such as France and
Germany. Separate elements of the results-oriented budgeting concept are also used in
Central and Eastern European countries, in particular in Bulgaria (the first ROB
implementation example was realized in 2002 by the Ministry of Environment and
Water) and Latvia (results-oriented budgeting was first introduced in the Ministry of
Agriculture).
Theoretical framework of applying the result-oriented budgeting. Despite the
fact that the introduction of ROB in the practice of managing public finance in different
countries has been carried out for many years, it cannot be stated that there is a country
where this process could be considered finally completed. Even in the United States, a
country with more than 50 years of practical experience in using a result-oriented
budget, the ROB concept is constantly changing. In this regard, the experience is
considered premature to draw definitive conclusions and to give unambiguous
recommendations on the basis of the budget reforms received in the course of
implementation. Nevertheless, many years of experience in using various
modifications of the concept of budgeting, results-oriented, or its individual elements
in different countries of the world may be beneficial for Ukraine.
Results-oriented budgeting (ROB) is a planning and strategic management tool.
It is actually a subset of “results-based management” (RBM). ROB seeks to align
budget allocations with anticipated results. Results-based management goes much
further, viewing the organizational management environment and culture in its entirety,
including also human resources management.
There is no universally accepted definition of exactly what ROB is in general, and
even less so in the particular context of international organizations, but the definition
proposed by the United Nations might be adopted:
“Results-oriented budgeting is a program budget process in which:
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