Updated analysis of performance budgeting during recent fiscal consolidation / [written by Trevor Shaw … [et al.]].: YN5-70/2015E-PDF

For fiscal years 2010-11 through 2013-14, no consistent statistically significant relationship exists between a department’s performance and its budget growth in the subsequent year(s). The performance data for 108 organizations does not suggest that financial resources have been reallocated from low-performing to high-performing programs. Rather, low-performing programs were somewhat more likely, on average, to receive budget increases in the subsequent year than programs that met targets or did not present measurable performance data. These findings are generally consistent with an earlier survey by the Organisation for Economic Co-operation and Development (OECD). It concluded that performance budgeting data among member countries were “less influential” on decision making during the fiscal consolidation that followed the Great Recession.

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