(a) program formulation revolves around a set of predefined objectives and
expected results;
(b) expected results would justify resource requirements which are derived from
and linked to the outputs required to achieve such results;
(c) actual performance in achieving results is measured by objective performance
indicators” [4].
The ROB concept has the overall goal of improving the governance of the public
sector. Thus, the result of the ROB should be a more efficient allocation of state
resources among the priority areas of government policy (between competing items of
expenditure) and increase the efficiency of their use.
Result-oriented budgeting is a system of organization of the budget process and
public administration, in which cost planning is carried out in direct connection with
the results achieved. Budgeting is a financial and managerial technology of modern
budget management, which seeks to most effectively spend limited budget funds in the
selection of funding alternatives.
The main block of the foundation of performance-oriented budgeting is, of course,
order. The order using the “ROB” method is expressed in the classification of tasks
aimed at achieving certain specific results. Therefore, each task is considered in the
form of a closed project, in the description (budget) of which information about the
purpose, essence, description of the planned result, calculation of the resources
necessary to ensure this result, and performance metrics are included. Budgeting
consists of a management cycle, which in turn includes the following steps (Fig.1):
Figure1.
The main stages of budgeting
Source: authors’ development
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