Performance budget
A performance budget allocates funds against measurable outputs or programme targets rather than spending categories, so year-end review checks results delivered per euro spent, not just whether money was spent as classified.
See it move
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A vaccination programme gets a €90,000 performance budget, €18 per vaccination for 5,000 doses. A line-item budget for the same €90,000 instead lists €50,000 salaries, €30,000 supplies and €10,000 transport. Only the performance version shows that delivering 4,000 vaccinations for the full €90,000 pushes actual cost to €22.50 each.
Where it fits
SubjectManagerial AccountingAdvancedTopicBudgeting & the Master BudgetAdvancedTopicStrategic Performance & the Balanced ScorecardAdvanced