New Performance Budgeting is nothing but an extension of outcome budgeting which in turn is inspired from Planning Programming Budgeting System. Discuss.

Answer: Planning Programming Budgeting System

• Introduced in US in 1950s
• Initially in military and defence departments
• The first step is to identify and examine the goals and objectives in every sphere of government activity
• Analysis of output is done in terms of objectives
• It stresses on long term planning with multi year expenditure programs
• Budget review based on output analysis Outcome Budgeting
• Among latest budget reforms
• First two steps are the same as PPBS
• After setting targets all activities having similar outputs are clubbed together
• There is emphasis on full costing including overheads
• Comparison is with actual output New Performance Budgeting
• Contains all the elements of output budgeting
• Also contains elaborate and explicit performance standards
• Accountability is given paramount importance
• Use of Information Technology is a key driving point.

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