Performance based budget and application in Kütahya special provincial administration in

Special Provincial Administrations that are local administrative units are legal personalities that are responsible for the management of city?s capital with the joining of the public. Special Provincial Administrations that date back to the Ottoman Empire, serves today to provide the local necessities and thus to contribute to the country?s economy.In general meaning, budged is a document that is prepared to say whether the income is able to compensate the expenses or not. Especially in governmental organizations, there are various budgeting systems to prepare annual budgets. One of those is the that is also our subject in this study. Performance Based Budget System is technique that is developed to get the maximum service outcome parallel to the expenditures made in governmental services. The study has special importance because of its possibility of making measurements based on performance especially at official applications.In the first part of this study where is to be used at city administration; it is mentioned about the special city administration and the organization of the financial relation between the managing parts of special city administration. In the second part, it is mentioned about the definition of Performance Based Budget System, its qualifications, basic principles, steps, the information used and the application of Performance Based Budget System in the world. In the third and last part it is mentioned about the application study of budgeting system at Kütahya City Special Administration according to the literature study.Key Words: Performance Based Budget, City Special Administration, Financial Relations Between the Administrators, Program Budget System, Performance System