Performance budget reflects how well a government entity is meeting its goals and objectives. Which of the following are the central point of Performance Budgeting?
A. It requires the establishment of performance levels and the collection of information
B. The amount of work that is done is measured
C. The quality or the results of that work is measured
D. This impacts how much money a department will receive in the future
Choose the correct answer from the options given below:

Correct option is C

Performance budgeting focuses on evaluating how government entities are achieving their goals, by linking the funding to the results and performance. The key elements of performance budgeting include:
· A. It requires the establishment of performance levels and the collection of information: This is essential, as performance budgeting begins by defining the expected levels of performance and collecting relevant data to assess these outcomes.
· B. The amount of work that is done is measured: This refers to the quantitative assessment of the work carried out by a department or agency, ensuring that the volume of work is in line with goals.
· C. The quality or the results of that work is measured: Performance budgeting also focuses on outcomes—evaluating the quality or impact of the work done, not just the quantity.
· D. This impacts how much money a department will receive in the future: Future funding decisions are influenced by performance outcomes. Departments that meet or exceed their goals may receive more funding, while those that underperform may face budget cuts.
Thus, all four options are central points of performance budgeting.
Information Booster:
1. Performance Budgeting: Links resources (funding) with measurable results or outcomes, aiming to improve efficiency and accountability in government spending.
2. Measurement of Work: Both the quantity of work (output) and its quality (outcome) are evaluated to determine how well objectives are being met.
3. Data Collection and Analysis: Performance budgeting requires data to track whether goals are being achieved and whether resources are being used efficiently.
4. Impact on Future Funding: Future budget allocations are tied to how well a department performs relative to its targets, fostering a results-driven approach.
5. Improved Accountability: By focusing on measurable outcomes, performance budgeting enhances transparency and accountability in government spending.
6. Goal-Oriented: This approach ensures that budgeting is aligned with the strategic objectives of the government or organization.
Additional Information:
· A (Establishment of performance levels and data collection): Correct, as performance budgeting requires clear goals and relevant data collection.
· B (Amount of work measured): Correct, as the volume of work completed is tracked to assess efficiency.
· C (Quality or results measured): Correct, as outcomes or the quality of work are essential for assessing the impact of government activities.
· D (Impact on future funding): Correct, since performance directly affects future budget allocations, rewarding high performance and penalizing underperformance.