The impact of performance-based budgeting on state fiscal performance

W. Crain and J. O’Roark

Economics of Governance, 2004, vol. 5, issue 2, 167-186

Abstract: Almost all American States have tried some form of performance-based budgeting, and this study examines the impact of this budget process innovation on state expenditures. Using panel data for 1970 through 1997 the findings indicate that performance-based budgeting curtails state spending per capita by at least two percentage points. However, not all state government programs are affected equally; some budget categories experience spending increases after the implementation of performance budgeting. The paper also examines the adoption pattern among states of performance budgeting rules. Copyright Springer-Verlag Berlin/Heidelberg 2004

Keywords: Budget process; fiscal rules; fiscal policy; state government finances; performance budgeting (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s10101-003-0062-6

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