Budget process governed by 3Es - economy, efficiency & effectiveness
One more form of budget, which has great significance is performance based budgeting. It is a unique and most advanced way of budgeting, in which the ultimate goal of policy makers becomes a set of performance factors – and developing strategies to achieve them. There are three pillars of this form of budgeting, which are often called 3E! Economy: focusing on cost of inputs with appropriate quality and quantity of financial, human resources. Efficiency: evaluating the relation between output and input. Effectiveness: what is the extent to which goals have been achieved. The speciality of performance budgeting is that it sets up targets to be achieved, comparing the country with the international arena using a few key performance indicators (KPIs) to relate performance with available resources; added to this is the performance scorecard approach, where KPIs are examined and the connections between causes and effects are established.
One more form of budget, which has great significance is performance based budgeting. It is a unique and most advanced way of budgeting, in which the ultimate goal of policy makers becomes a set of performance factors – and developing strategies to achieve them. There are three pillars of this form of budgeting, which are often called 3E! Economy: focusing on cost of inputs with appropriate quality and quantity of financial, human resources. Efficiency: evaluating the relation between output and input. Effectiveness: what is the extent to which goals have been achieved. The speciality of performance budgeting is that it sets up targets to be achieved, comparing the country with the international arena using a few key performance indicators (KPIs) to relate performance with available resources; added to this is the performance scorecard approach, where KPIs are examined and the connections between causes and effects are established.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
