Results Based Budgeting - An Overview
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Organizations define RBB in different ways; however all definitions revolve around the concept of aligning resources behind results. Along the definition of RBB offered by the Secretary General of the United Nations, RBB is a results-driven budgeting process in which:
- Programme formulation and resources justification involve a set of predefined objectives, expected results, outputs, inputs and performance indicators which constitute a ‘logical framework’;
- Expected results justify resource requirements, which are derived from — and linked to — outputs to be delivered, with a view to achieving such results; and
- Actual performance in achieving results is measured by predefined performance indicators.
This definition captures three of the main features of RBB, namely: (i) use of a ‘logical framework’ for informed budgetary decision making; (ii) resources justification by results; and (iii) infusion of performance measurement into the budgetary decision-making process
The FB Network has been working on this subject with the objective of developing a common framework for RBB that could be adapted by each organization in line with its own business and related requirements, specifically focusing around the issues of: linking planning and budgeting (including RBM-RBB linkage), terminology and definitions, methodologies for RBB, as well as RBB in a multi-funded environment and related implications.
The main conclusions of a study (CEB/2005/HLCM/R.6) presented to the HLCM in April 2005 showed that agencies were at different levels of RBB readiness in terms of existing internal RBM frameworks, information systems, budget management, internal accountability frameworks, internal leadership, etc. This would be reflected in implementation strategies for RBB, which would represent the means for presenting both to donor partners and recipient countries the competing priorities that agencies were confronting, the resource requirements to achieve the mandated outcomes or results, the decisions on strategic allocation of resources, and accountability for success or failure.
The HLCM took note of the document and endorsed it as a common framework for RBB that could be adapted by each organization of the UN system in line with its own requirements.
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Last modified 2007-11-19 12:24