Introducing Performance-Based Budgeting to Local Government in Poland

Abstract

Performance-based budgeting is a new concept in Polish public fi nance, and has been implemented as a state budget management tool since 2007. Local government units are only gradually being prepared to implement budget planning. Th is entry aims to point out the status of the progress. Th e 2009 public fi nance act introduced long-term fi nancial forecasts and internal controls as performance-based budgeting tools (plus long-term planning along with defi ning goals, tasks and measures). Moreover, local governments plan expenditures according to their statutory tasks, which is a fi rst step to performance-based budgeting. Nevertheless, there are some areas in the functioning of local government where implementing performance-based budgeting needs further regulation.