Question

What are the obstacles and challenges to successfully implement performance budgeting management in the Ministry of Health?

A model of performance budgeting management is not just one, but a range of different models, all these link funding and results, but in different ways.

Discuss some of the models in relation to Ministry of Health performance budget management.

Answer 1

Models in relation to Ministry of Health Performance budget management are as follows:

• Incremental budgeting: It takes last year actual figures as the base figure and make adjustments as per the current year situations
• Activity Based Budgeting: It is based on the method of top down approach in which first the inputs are decided which are required for the output and then the budget is set for the required inputs.
• Value proposition Budgeting: Value proposition budgeting is a method to emsure that there is no unnecessary expenditures and to ensure that the bubgets set are enough to meet the desired results.
• Zero Based Budgeting: In this type of budgeting, everyone is allocated with zero budget, every expense that is incurred need to be explained and justified with proper reasons.

Obstacles and challenges to successfully implement performance budgeting management in the Ministry of health are as follows:

• Lack of govt support.
• Budgets defined are usually much more lower than the actual amount of expenditure that is incurred.
• Needy people are usually deprived of the benefit provided by the govt.
• Middlemen take undue benefit of the services initiated for the poor people.