An Analysis of Introducing Program Budgeting in Local Government

Program budgeting has been in use for 30 years. It has had a checkered history, being considered alternately a great advancement or an unworkable system. Little has been written about the consequences for the organization that has adopted it. This study was undertaken concerning local government across the State of Victoria, Australia. A questionnaire was sent to all municipalities. There was a 60 percent response rate. Results show that information generated by planning programming budgeting (PPB) is used for decision making but in a limited way. The proposition that PPB will have an impact on the operations of councils is only partially supported.