Performance budgeting (PB) is the newest strategy to make the public sector work. Yet as with other similar strategies, PB is fundamentally flawed. Without a system of profit and loss, a bureaucracy not only has trouble motivating its employees; it can't determine the value of what they are doing in the first place.
Francois Melese
François Melese is professor of economics and deputy executive director of the Defense Resources Management Institute (DRMI) at the Naval Postgraduate School in Monterey, California.