Exploring ‘agency-level performance budgetary incentives’ as an effective tool to improve policy outcomes: A case study of the Western Cape government budgeting system.
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Date
2024
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University of the Western Cape
Abstract
The research study focuses on the adoption and implementation of performance budgeting within the Western Cape province of South Africa, a critical area of inquiry given the ongoing challenges faced by the region, including unemployment, crime, and public health issues. Performance budgeting is understood as a strategic approach designed to enhance the efficiency of public expenditure by linking funding to measurable outcomes. This study aims to explore how performance budgeting can be integrated into the budgetary processes of the Western Cape Government, specifically through agency-level budgetary performance incentives, thereby potentially improving policy outcomes. The significance of this research lies in its exploratory nature, as it seeks to uncover the mechanisms through which performance budgeting can be effectively utilised in a subnational context. By examining the existing planning, programming, and budgeting systems, the study identifies the current features of performance budgeting incentives, as well as the enablers and inhibitors that may affect the implementation of performance budgeting practices. Through qualitative methods, including interviews with Provincial Treasury officials, the research provides insights into the practicalities and challenges of integrating performance-based approaches in public finance management. Ultimately, this research study aims to contribute to the broader discourse on public sector reform and governance by providing a foundational understanding of performance budgeting in the Western Cape. It seeks to offer recommendations for enhancing resource allocation and spending efficiency, thereby fostering improved policy outcomes that respond to the pressing needs of the province's communities.
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Keywords
Performance Budgeting, Strategic Planning, Agency-level Performance Budgeting Incentives, WCG budget system