Performance based badgeting system and applicability in Azerbaijan

.As a result of changes in the state administration of the world countries, budget reforms are carried out to improve the quality of public goods and services. For these purposes, budgeting systems changes from input-oriented concept to outcome/output-oriented Performance-Based Budgeting system. These reforms, especially carried out by the management of the Western countries, have begun to spread to the countries expanding and developing since the 1990s. With the Prerformance-Based Budgeting System, which ensures more efficient and productive use of state resources, exercising responsibility on fiscal transparency and reporting in state administration, maintaining economic stability are main goals. Based on these goals, the Performace-Based Budgeting system, which has been applied in different countries, has been developed by each country in accordance with its economic and financial structure. The Performance-Based Budgeting System, which provides for the preparation, implementation and control of budgets with a results-oriented approach, has been used by countries as an important tool for improving state administration systems and implementing their macroeconomic objectives. As a result of the development occurring in the world, the Republic of Azerbaijan has begun to move towards the reduction of the dependence of its vii economy on natural resources, transition to the budget system based on outcome in the search for the solution of the economic problems it faced. With the decrees issued for this purpose, the main structure and control process of the budgeting system based on the outcome have been determined. First of all, the budgeting systems and the conceptual framework for the Performance-Based Budgeting system were determined, information on the features of the Performance-Based Budgeting system was provided in the works carried out. Later on, implementation of the Performance-Based Budget system in some developed countries and Turkey was discussed and results of the implementation were assessed. In the end, conversations on the works done for the transition to the budgeting system based on the outcome in Azerbaijan were held and the world experience on the steps to be taken for a successful transition process were discussed. Key Words: Performance-Based Budgeting, Budget Systems, Budget Reform, Results-based Budgeting