The Role of Medium-Term Expenditure Frameworks and Executive Budget’s Flexibility in Implementation of Performance Budgeting

Performance budgeting refers to public sector funding mechanisms which use performance information to link funding to results – outputs and/or outcomes – with the aim of improving performance. The purpose of this paper is to examine the role of medium-term expenditure frameworks and executive budget’s flexibility in implementation of performance budgeting. A questionnaire was used to infer the research hypotheses. This questionnaire was distributed among ۷۰ financial and budget staff in the Isfahan municipality in ۱۳۹۸. To test the hypotheses, information are analyzed by the structural equation modeling. Findings show that there is a positive and significant relationship between the medium-term expenditure frameworks and performance budget and also between the budget flexibility and performance budget.

Keywords:

Budget Flexibility , Medium-term Expenditure Frameworks , Performance Budget