IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v9y2019i4p79-d274852.html
   My bibliography  Save this article

Performance Budgeting in Context: An Analysis of Italian Central Administrations

Author

Listed:
  • Andrea Bonomi Savignon

    (Department of Management and Law, University of Rome “Tor Vergata”, 00133 Rome, Italy)

  • Lorenzo Costumato

    (Department of Management and Law, University of Rome “Tor Vergata”, 00133 Rome, Italy)

  • Benedetta Marchese

    (Department of Management and Law, University of Rome “Tor Vergata”, 00133 Rome, Italy)

Abstract

The impact of financial austerity in many countries and the need to set the direction for governments have radically changed several aspects of Public sector management (Rubin and Willoughby 2014; Anessi-Pessina et al. 2016). A central component of this effort to transform public management involves using strategic planning and performance measures for budgeting decisions (Joyce 1997). Over the last decade, there has been an increase in the use of performance budgeting at the national as well as at subnational and local level, with varying approaches and results across countries (Bleyen et al. 2017; OECD 2017). This article analyzes the dynamics of strategic planning and performance management practices in relation to the budgeting processes in the context of the Italian central government, with the aim of evaluating whether a predominant integration model is apparent in relation to those used in different countries at the OECD level. Starting in 2009, reforms concerning the implementation of performance management tools in the Italian public sector have been promoted and revised, although the need to fully integrate the performance and budgeting processes looks urgent. Based on data from Italian Ministries, this article analyzes the type of relationship and the degree of coherence between adopted strategic plans and budgets. The results show the persistence of a prevalent misalignment between planning and budgeting. Data that were collected from the analysis of strategic plans and budgets from ten Ministries depict a patchy situation, in which some ministries integrate the processes defining a consistent and comparable model, while some others do not. In the conclusions, areas for improvement of the process are identified, while providing policy implications.

Suggested Citation

  • Andrea Bonomi Savignon & Lorenzo Costumato & Benedetta Marchese, 2019. "Performance Budgeting in Context: An Analysis of Italian Central Administrations," Administrative Sciences, MDPI, vol. 9(4), pages 1-15, October.
    • Handle: RePEc:gam:jadmsc:v:9:y:2019:i:4:p:79-:d:274852
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/9/4/79/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/9/4/79/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rhys Andrews & George A. Boyne & Jennifer Law & Richard M. Walker, 2012. "Strategic Management and Public Service Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-34943-8.
    2. Pieter Bleyen & Daniel Klimovský & Geert Bouckaert & Christoph Reichard, 2017. "Linking budgeting to results? Evidence about performance budgets in European municipalities based on a comparative analytical model," Public Management Review, Taylor & Francis Journals, vol. 19(7), pages 932-953, August.
    3. Allen Schick, 2007. "Performance Budgeting and Accrual Budgeting: Decision rules or Analytic Tools?," OECD Journal on Budgeting, OECD Publishing, vol. 7(2), pages 109-138.
    4. Denita Cepiku & Alessandro Hinna & Danila Scarozza & Andrea Bonomi Savignon, 2017. "Performance information use in public administration: an exploratory study of determinants and effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(4), pages 963-991, December.
    5. Teresa Curristine & Zsuzsanna Lonti & Isabelle Joumard, 2007. "Improving Public Sector Efficiency: Challenges and Opportunities," OECD Journal on Budgeting, OECD Publishing, vol. 7(1), pages 1-41.
    6. Mariafrancesca Sicilia & Ileana Steccolini, 2017. "Public budgeting in search for an identity: state of the art and future challenges," Public Management Review, Taylor & Francis Journals, vol. 19(7), pages 905-910, August.
    7. Mr. Marc Robinson & Mr. Jim Brumby, 2005. "Does Performance Budgeting Work? An Analytical Review of the Empirical Literature," IMF Working Papers 2005/210, International Monetary Fund.
    8. Ronnie Downes & Delphine Moretti & Scherie Nicol, 2017. "Budgeting and performance in the European Union: A review by the OECD in the context of EU budget focused on results," OECD Journal on Budgeting, OECD Publishing, vol. 17(1), pages 1-60.
    9. Eugenio Anessi-Pessina & Carmela Barbera & Mariafrancesca Sicilia & Ileana Steccolini, 2016. "Public sector budgeting: a European review of accounting and public management journals," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 29(3), pages 491-519, March.
    10. Jesper Rosenberg Hansen & Ewan Ferlie, 2016. "Applying Strategic Management Theories in Public Sector Organizations: Developing a typology," Public Management Review, Taylor & Francis Journals, vol. 18(1), pages 1-19, January.
    11. Pieter Bleyen & Stijn Lombaert & Geert Bouckaert, 2015. "Measurement, incorporation and use of performance information in the budget A methodological survey approach to map performance budgeting practices in local government," Society and Economy, Akadémiai Kiadó, Hungary, vol. 37(3), pages 331-355, September.
    12. Peter M. Jackson, 2011. "Governance by numbers: what have we learned over the past 30 years?," Public Money & Management, Taylor & Francis Journals, vol. 31(1), pages 13-26, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meldina Kokorovic Jukan & Elman Nadzakovic, 2022. "Performance Budgeting In The South-East Europe Countries: A Comparative Study On Present State And Future Perspectives," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 20(2), pages 23-40, November.
    2. Alaa Mohama Malo Alain & Magdy Melegy Abdul Hakim Melegy, 2017. "Program and Performance Budgeting System in Public Sector Organizations: An Analytical Study in Saudi Arabian Context," International Business Research, Canadian Center of Science and Education, vol. 10(4), pages 157-166, April.
    3. Mauro, Sara Giovanna & Cinquini, Lino & Pianezzi, Daniela, 2021. "New Public Management between reality and illusion: Analysing the validity of performance-based budgeting," The British Accounting Review, Elsevier, vol. 53(6).
    4. Ilir TOMORRI & Remzi KECO & Gentjan MEHMETI & Shpresim DOMI, 2020. "The Performance Assessment Of Public Sector In Albania," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(34), pages 170-180, June.
    5. Liying He & Kamisah Ismail, 2023. "Do staff capacity and performance-based budgeting improve organisational performance? Empirical evidence from Chinese public universities," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    6. Norman Gemmell & Patrick Nolan & Grant Scobie, 2017. "Public sector productivity: Quality adjusting sector-level data on New Zealand schools," Working Papers 2017/02, New Zealand Productivity Commission.
    7. Mohammad Ali Alharbi & Mohd Saidin Misnan & Mohd Nur Izieadiana Abidin, 2024. "Challenges and Opportunities in Safety Compliance for Saudi Arabian of MSMCs in Construction," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 2143-2152, December.
    8. Weixiang Zhao & Yankun Xu, 2022. "Public Expenditure and Green Total Factor Productivity: Evidence from Chinese Prefecture-Level Cities," IJERPH, MDPI, vol. 19(9), pages 1-27, May.
    9. Timothy C. Irwin, 2015. "Defining The Government'S Debt And Deficit," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 711-732, September.
    10. Asogwa & Ikenna Elias & Etim & Osim Etim, 2017. "Traditional Budgeting in Today’s Business Environment," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(3), pages 1-7.
    11. Makoto Kuroki, 2022. "Impact of Depreciation Information on Capital Budgeting among Local Governments: A Survey Experiment," Australian Accounting Review, CPA Australia, vol. 32(2), pages 201-213, June.
    12. CRĂCIUN Liviu & BĂLOI Ionut-Cosmin, 2014. "Dysfunctions In The Application Of The Managerial Control Systems In Romanian Public Institutions: The Reporting Improprieties, The Information And The Communication Standards," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1149-1155, July.
    13. Jakub Haas & Eva Gajdošová, 2016. "The Performance Indicators for The State Health-related Expenditures: Lessons from OECD," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(1), pages 5-22.
    14. Panagiota Xanthopoulou & Vassilis Kefis, 2019. "Public Organisations and Public Management in Greece: The Implementation of Private Management Tools in the Public Sector," International Journal of Sciences, Office ijSciences, vol. 8(03), pages 45-54, March.
    15. Olga V. Bogacheva & Oleg V. Smorodinov, 2019. "Management of “Transit” Revenues of the Federal Budget in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 9-20, October.
    16. Iwona Franczak, 2021. "Creative Accounting in Poland’s Sub-Sector of Local Governments," European Research Studies Journal, European Research Studies Journal, vol. 0(4 - Part ), pages 997-1017.
    17. Tavana, Madjid & Ebrahimnejad, Ali & Santos-Arteaga, Francisco J. & Mansourzadeh, Seyed Mehdi & Matin, Reza Kazemi, 2018. "A hybrid DEA-MOLP model for public school assessment and closure decision in the City of Philadelphia," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 70-89.
    18. Martins, José & Marques, Rui Cunha & Cruz, Carlos Oliveira, 2014. "Maximizing the value for money of PPP arrangements through flexibility: An application to airports," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 72-80.
    19. Jose M. Cordero & Cristina Polo & Nickolaos G. Tzeremes, 2020. "Evaluating the efficiency of municipalities in the presence of unobserved heterogeneity," Journal of Productivity Analysis, Springer, vol. 53(3), pages 377-390, June.
    20. Martina Halaskova & Renata Halaskova & Viktor Prokop, 2018. "Evaluation of Efficiency in Selected Areas of Public Services in European Union Countries," Sustainability, MDPI, vol. 10(12), pages 1-17, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:9:y:2019:i:4:p:79-:d:274852. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.