PPBS

Planned Program Budgetary System

PLANNED PROGRAM BUDGETARY SYSTEM

1. Explain the Planned Program Budgetary System (PPBS) and its relationship to the Value for Money (VFM) model, also known as the 3Es model

Planned Program Budgetary system is a technique of measuring the consumption, this method was primitively employed in the control of military spending in USA in the year 1961, and then this program was carried forward to the federal government in the year 1965. The objective behind this was that by gathering a huge quantity of data and processing that data in a scientific way. This was to determine the cogent standards for managing the funds of the public to make sure that the allotment of the budgetary appropriations by the benefits i.e. the returns that have been offered in a number of numerous classes of expenditure. This technique consists of recognizing the objectives of the long-term, then quantifying the related expenditures, and the advantages of the different programs can be financed from the budget and this would establish a rating of the indicator of their effectualness. (Bonham & McClarin 2000)This method makes sure that the recognition of the erect alternatives in the same department, however, this method does not enable the formulation of any horizontal options, which would strengthen the allotment of the appropriations of the budget in between the different departments. This would imply a common standard of effectively for all the departments, which is very hard to determine and enforce. The method was prepared as a technique for apportioning the resources in different programs, but after 6 years of being implementation, this method was deserted due to not so encouraging results. Even though this method does not ensure the optimal outcome, this technique ensures that the utilization of diagnostic techniques, the application of ways according to the requirements & the studies, forecasts, and the benchmarks to develop and enforce the different programs for budget making. As an alternative, as a decision for a budget is dependent on a technocratic instead of political criteria, this method has been censured for creating the danger of escalation the power of the technocrats and minimizes the choice of the policy-makers, the degree to which that consenting the criteria based on scientific reasoning, is demanding for alternative ranked first. Likewise, the technique has the drawback of being ineffectual in clearly defining the targets, which trends to create confusion between the goals and the ...