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Performance Budget

Reference Number: MTAS-1789
Reviewed Date: 11/09/2022

A performance budget allocates money to activities or programs; plus it describes the amount of services that will be produced with the money allocated. This method of budgeting focuses on outputs and outcomes. It is developed by estimating revenues needed to acheive a level of outcomes. It allows an adjustment of the level of services provided as to both quality and quantity. It is a very useful budget system, but it is difficult to prepare because of the amount of information necessary to do so properly.