Page 1 : specific indicators regarg, means of achieving them, i] oe the monitoring and evaluat, , DS ding and reporting system, Calculate the costs of all inputs,, , ts in terms of benefits, , Thus the performance budgeting tri, nd financial aspects of each Program and activity, wfablishes the relationship between Output an, meses each programme in the light of financial, , factors:, Tools Used in Performance Budgeting, , itinvolves the development and use of More refined m, , tools, e.g. ., , + Work measurement studies to measure, works, , + Performance standards and its specific indic., the performance, , « Monitoring methods like PERT, , * Other methods like cost analysis., , ing each, — task, De ecily, , TON system or Performance, , Tesources to, , achieve the, , 'es to define the Physical, and thereby, d inputs, It, and economic, , anagement, , OF to identify various, , ations to measure, , , , , Preparation of Budget under Performance Budgeting, , The following steps are followed while Preparing the budget, under performance budgeting:, , Allocation of Resources, , * Submit the requirements as per programme classification, , * Indicate its past activities, their costs, the activities to be taken, up during next year, the results expected, pattern of assignment, of responsibilities or time phased plan for expenditure and, work,, , Budget Execution, , * Initiate the action for implementation after getting the grants, , * Monitor the activities and regulate flow of expenditure, , * Prepare the time phased reports showing expenditure and, work and keep a record 7, , Appraisal and Evaluation, , * Evaluate each programme in the light of results obtained and, iture incurred, , TERM APPRAISAL, a AISAL, MTA, dT i in the, Term Appraisal (MTA) reviews the experience in, e a ll and seeks to identify areas, , , , , , , , , , , stock of the economy and to introduce policy, tives in critical areas in the eqn of, i i luctive, , ade in utilizing pro, ae | on the investment front., of the resources position, , , , , Budget and Budgetary Process, , , , , rid Overview of Mid Term Appralsarcrhekiavent, lan (2007-08 to 2014 -12), , The Mid Term Appraisal reveals that the economy has weathered, , oN exceptionally difficult global environment very well and is, , Now well poised to return to 9% growth by the terminal year of, , the Eleventh Plan, , 1. Promotion of large number of programmes, e.g. NHRM, ICDS,, MDN, Which are aimed at the weaker section are being, Identified during monitoring and evaluation and these need, to be addressed through mid course correction., , 2. Malnutrition among children is another area that needs mid, term appraisal, where progress is too slow., , 3. The improvement in the implementation of social sector, programmes which are sponsored by Central Government, requires special attention., , 4. Macro-economic policies are required to make sure that fiscal, consolidation takes place as planned., , PROGRAMME PLANNING, BUDGETING SYSTEM (PPBS), , Introduction, , Programme Planning Budgeting System (PPBS) is a system for, planning and control. It is launched in 1965. It is process under, which priorities among kinds of services may provide are, weighed; objectives are stated in operational term: alternative, means to accomplish the given objectives are analyzed_, , Meaning, , * It is a systematic method of allocating the resources of an, organization in ways that will most effectively help the, organization to meet its goals and objectives. This is also, known as Program budgeting., , * Itis a management tool to provide a better analytical basis for, decision making and for putting such decisions into, operation., , * The Planning, Programming, Budgeting System (PPBS) is an, in-depth budget format in which strategies are planned in, multi-year increments, programs are regularly analyzed to, ensure optimal strategies are in place, and budgets are, developed to provide resources according to those strategies., , * Itis an integrated and analytic approach used to allocate the, resources in the most effective manner to meet the goals of, operations,, , History, , The concepts of PPBS were first used in private industry by, companies such as the Rand cooperation, General Motors. As, early as 1940, principles of PPBS were used in World War II, production control. The system received national attention in, US in 1961 when it was introduced by Secretary of Defense, Robert McNamara. Later it was mandated to use by all federal, agencies in 1965 by President Lyndon Johnson. The system, provides a uniform language to be used in all the agencies, requesting funding over a multiyear Period.