Performance Based Budgeting and its Impact on the Efficiency of Financial Resource Allocation An applied study in the Emirate of Sharjah

Abstract

The performance-based budgeting process is considered to be one of the effective tools that support government capabilities in allocating financial resources to government spending and linking government spending to a set of financial and strategic performance indicators. The performance budget is based on a set of basic principles and pillars that achieve the objectives of their implementation in Governmental departments, and integrates the government's financial system with the governmental strategic directions and priorities.This research aims to measure the impact of the performance budget implementation on the efficiency of government resource allocation on government programs and activities. The implementation was chosen in the United Arab Emirates - Sharjah government, being a proactive government in adopting and implementing performance budget (activities and results). A sample of (100) employees was chosen. The sample includes employees currently employed at the government of Sharjah in various fields, such as financial, strategic and administrative.A set of variables that measure the basic elements of performance balancing are referred to as independent variables, and the allocation of financial resources as approved variables. The data was collected through a questionnaire designed for the purpose of allocating government financial resources.The main conclusion is that the implementation of the performance budget will lead to achieving efficiency in the allocation of financial resources, and enhance its ability to maintain and control spending.