Output based budgeting

Output Based Budgeting Introduction Output Based Budgeting (OBB) is a tool used in many countries to make social sector expenditure more result-oriented and to help achieve policy objectives. It reflects the input of resources and the output of services for each unit of an organization. This type of budget is commonly used by the government to show the link between the funds provided to the public and the outcome of these services. According to the comprehensive definition of Segal and Summers, performance budgeting comprises three elements: • the result (final outcome) • the strategy (different ways to achieve the final outcome) • activity/outputs (what is actually done to achieve the final outcome)