Performance Based Budgeting as a National Necessity & Starting Point

The most basic environmental characteristics of governmental activities whichare included agency form of government, differentiating the trinity powers and lackof exchanging relationShip between providing Financial sources with presentableservices of government Show that assessing the performance of administrativeauthority require to use criteria and indices which they insure to the nation and theirlegal representatives about accessing for predetermined and approved goals.thereforethe conception of public accountability has been concerned as an appropriate criterionand scale to assess the governmental performance so that according to The Gcl ofGASB " The basis of governmental financial reporting is accountability".Therefore theperformance based budgeting(PBP)which is based on accountability is appeared as anappropriate tool for government in satisfying their accountability function.As a results itis a national necessity.In other words; since one of the basic objectives of managementaccounting is cost management and control so that both are achieved only under theprecise measurment and computation;Therefore the performance based budgeting bycomputing the precise cost of target plays critical role in facilitating and smoothingthe way for utilizing the progressive management accounting techniques for exampleABM, ABC,BSC and etcetera.Therefore it is appeared as a starting point of utilizingthe management accounting techniques in public sector. Hence this article has reviewedperformance based budgeting from tow point of view; the tool of public accountabilityfor government and the starting point of utilizing progressive management accountingtechniques in public sector.