Multiple choice

Consider the following statements:

Performance budgeting is a system of resource allocation that

  1. organises the budget document by operations and programmes.

  2. links performance levels of operations and programmes with specific budget.

Which of the statements given above is/are correct?

  1. Only 1

  2. Only 2

  3. Both 1 and 2

  4. Neither 1 nor 2
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Performance budgeting is a results-oriented approach that organizes the budget by operations and programs (Statement 1) rather than traditional line-item classification. It also establishes a direct link between performance levels/outputs and the allocated budget (Statement 2), requiring measurable performance indicators. Both statements are correct.

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