Performance based budgeting system as a tool of performance management in the public sector: An example of metropolitan municipalities

With the transition of performance management practices in metropolitan government, it is anticipated that, obtaining some benefits such as improved in accountability, citizen-centred services, results orientation and betterment performance. Performance based budgeting is among the tools of performance management that are used to achieve this objectives.The purpose of this study is to determine the factors that affect the functionality of performance based budgeting system, as a tool of performance management. In this context, in the first part of thesis it is examined the objectives of and the tools of performance management. After, it is examined the external and internal factors that affecting the functionality of performance based budgeting system as a tool of performance management in the theoretical base. In the second part of thesis it examined the development stage of performance management and functioning of performance based budgeting system in metropolitan governments in developed countries. In the final part of thesis it is examined the development stage of performance management and the functioning of performance based budgeting system in metropolitan governments in our country, in the context of public sector reforms. An analysis has been made to determine which factors that affect the functionality of performance based budgeting system as a tool of performance management.Key Words: Metropolitan Government, Performance Management, Performance Based Budgeting System, Turkey, Regression Analysis.