Implementation of Performance-Based Budgeting in Local Government: A Case Study

Thesis Abstract

Abstract
Performance-based budgeting (PBB) has gained significance as a budgeting approach that aligns financial resources with the strategic priorities of organizations, aiming to enhance accountability, transparency, and effectiveness in resource allocation. This thesis investigates the implementation of PBB in local government through a case study approach, focusing on the challenges and opportunities faced by a specific local government entity in adopting and executing PBB. The study employs qualitative research methods, including interviews, document analysis, and observation, to explore the complexities of implementing PBB within the context of local government operations. The introductory chapter provides an overview of the research background, problem statement, objectives, limitations, scope, significance, and structure of the thesis. The literature review chapter critically examines existing scholarly works on PBB, local government budgeting, performance management, and the challenges of implementing PBB in the public sector. The chapter also discusses the theoretical frameworks underpinning PBB and its potential benefits for local government entities. The research methodology chapter outlines the research design, sampling strategy, data collection methods, and data analysis techniques employed in the case study. It also discusses the ethical considerations and limitations of the study, ensuring the rigor and validity of the research findings. The subsequent chapter presents a detailed discussion of the findings derived from the case study, highlighting the key challenges, successes, and lessons learned in implementing PBB in the local government context. The concluding chapter summarizes the main findings of the study, discusses their implications for practice and policy, and provides recommendations for improving the implementation of PBB in local government entities. The thesis contributes to the existing literature on PBB implementation by offering insights into the practical challenges faced by local governments and suggesting strategies for enhancing the effectiveness of PBB as a budgeting tool. This research aims to inform policymakers, practitioners, and scholars interested in improving financial management practices in the public sector. In conclusion, this thesis provides a comprehensive analysis of the implementation of PBB in local government, offering valuable insights into the complexities and opportunities associated with adopting this budgeting approach. By examining a specific case study, the research sheds light on the practical challenges faced by local government entities in implementing PBB and proposes recommendations for enhancing its effectiveness and efficiency.