Performance Based Budgeting - Basis for Strengthening the Efficiency and Transparency of the Public Sector of the R. Macedonia

Abstract

How rational are public funds spend and is there a way to determine the effectiveness of the public resources management by policy makers and public administration? These are questions that a long period of time are questioned in R. Macedonia, but activities, information and steps for their answering have not been clearly established. In this respect the general goals set for this paper / analysis include: overview of the main issues and challenges facing the budget process and the structure of public administration in the country; elaboration of performance-based budgeting and its benefits for the allocation and management of public funds by policy makers and public administration; analyzing the current situation in terms of measuring performance in the public sector, and an analysis of the need and benefits for introduction performance budgeting, which will increase transparency, accountability and efficiency of the public sector in the country (in this context briefly are addressed the possible steps towards the implementation of this concept in Macedonia). Keywords: performance budgeting, public sector, budgetary process