Performance based analytical budget system and evaluation of Turkish practice

Today, the term ?budget? is a document which facilitatesassociations and enterprises to determinate their priorities and to takemanagement decisions by formulating the threats they come up againstintelligently, more than being solely a financial document. Modernmanagement techniques are much more in use as a result of the intensecompetition in private sector enterprises and more effective budgets arebeing prepared compared to public sector.However, in the globalize world after 1980s, the rapid increase inthe share of public expenditures in the GNP (Gross National Product) as aresult of the exchanges in economic doctrines, the development ofdemocracy and information society have an encouraging role in theimprovement of budgeting which has a key role in the realization of publicexpenditures. The effectiveness of the budgetary system and indirectly thepublic expenditures system provides rational and accountable use ofpublic resources by the political government, in other words the efficiencyof the state. Basic targets connected with the improvement of thebudgeting system are to increase the accountability and transparency, toput multi-annual budgeting into practice and to increase the performanceof public agencies. Therefore, performance based budget system hasbeen used.Performance based budgeting helps the distribution of insufficientsources to get maximal social benefits. More than being a budgettechnique or a modal, it is a management system which grabs the wholepublic management. The system is being configured to encourage long-range planning, to turn the determined targets to desired results, to takethe right decisions by using the results of the performance measurementseffectively in programmed priorities and allocation of resources. Thisbudget system aims at the acceptance of the performance targets bypublic servants and to lift the unnecessary restrictions on the managementconnected with resource utilization to reach these targets. In stead ofgiving the account of the money spent, giving the account of reaching thetargets that come from recovered sources has become important.The budget system in Turkey is configured again with in theframework of the new public finance management understanding with thehelp of worldwide developments and good applications. Although themulti-annual performance based budgeting system is still at applicationlevel in our country, it will contribute to the efficiency in public expenditureswith widespread use in near future and to increase the social welfareaccordingly.