Performance-Based Budgeting as a Driver of Transparency and Accountability in Public Financial Management

Abstract

The complexity of public financial management requires a system that ensures transparency, accountability, and efficiency in the use of public funds. Performance-Based Budgeting serves as a strategic instrument to establish a clear linkage between resource allocation and measurable outcomes through defined performance indicators. This study employs a Systematic Literature Review19 of scientific publications from the past five years to examine the relationship between the implementation of Performance-Based Budgeting, transparency, and accountability in public financial management. The findings indicate that the adoption significantly contributes to strengthening fiscal accountability, improving public spending efficiency, and enhancing public trust in government institutions. Key factors influencing its success include the capacity of public officials, consistent institutional commitment, and the availability of open and accessible financial information systems. Conversely, implementation failures are often driven by weak performance-oriented cultures, limited technical competencies, and resistance to bureaucratic reform efforts. Thus, functions not only as a technical budgeting tool but also as a transformative instrument for advancing public sector governance toward more transparent, accountable, and performance-oriented practices.