Output budgeting is a wide-ranging management technique introduced into the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

in the mid-1960s by

Robert S. McNamara Robert Strange McNamara (; June 9, 1916 – July 6, 2009) was an American business executive and the eighth United States Secretary of Defense, serving from 1961 to 1968 under Presidents John F. Kennedy and Lyndon B. Johnson. He remains the lo ...

's collaborator

Charles J. Hitch Charles J. Hitch (January 9, 1910 – September 11, 1995) was an American economist and Assistant Secretary of Defense from 1961 to 1965. He later served as vice chancellor (1965–1967) and president (1967–1975) of the University of California an ...

, not always with ready cooperation with the administrators and based on the industrial management techniques of program budgeting. Subsequently, the technique has been introduced into other countries including

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

and the UK. Planning, Programming, and Budgeting System (PPBS) is in effect an integration of a number of techniques in a planning and

budgeting A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmen ...

process for identifying, costing and assigning a complexity of resources for establishing priorities and strategies in a major program and for forecasting costs, expenditure and achievements within the immediate financial year or over a longer period. United States Department of Defense leaders use their Planning, Programming, and Budgeting System to link operational requirements with financial obligations. Department of Defense branches typically divides the process into plans, programs and budgets. While planning, programming, and budgeting continues throughout the year, PPBS dictates a sequential and an annual process culminating with annual Defense Plan, followed by a Defense Program, and then a Defense Budget. PPBS requires Planners focus on operational requirements, programmers link the plans to a six-year financial plan (known as a Future Years Defense Plan (FYDP)), and budgeters prepare a two-year Congressional budget. While each step contains more detailed financial data, the two-year Congressional budget stems from the six-year Future Years Defense Plan, which is based on the even longer term Defense Plan.

Literature

* Department of Education and Science, London, England. (1970).''Output Budgeting for the Department of Education and Science'', Pendragon House, Inc. 176 p. * Christine E. Bonham, Elizabeth A. McClarin (2000)
''Accrual Budgeting: Experiences of Other Nations and Implications for the United States''
DIANE, 217 p.

References

* ttp://blog-pfm.imf.org/pfmblog/2007/11/from-line-item-.html From Line-item to Program Budgeting, John Kim, Seoul, 2007br>Program and Performance Budgeting Enthusiasm in India -- IMF Training Course, Holger van Eden, IMF, 2007
United States Department of Defense Government budgets {{Business-stub