Appropriateness and Use of Performance Information in the Budgeting Process: Some Experiences from German and Italian Municipalities

ABSTRACT

This article contributes to the debate on the use of performance information in the context of public sector performance management. Based on case studies, the authors analyze the appropriateness of the performance information provided in the newly established performance budgets of municipalities in Germany and Italy. They also examine the interest of politicians and senior managers in using such information for decision-making and monitoring within the municipal budget cycle. They find that the use of performance information is generally quite modest, and that the interest of different local actors varies to a great extent. Politicians are generally less interested in such information than top managers, particularly chief financial officers. The results are discussed by applying a theoretical framework based on institutional and legitimacy theories, and are compared with the literature on performance information use.

KEYWORDS:

• Italy
• Germany
• local government
• performance budget
• performance information use
• performance management

Notes

The table does not cover the whole varied range of empirical findings obtained by recent research (e.g., the long list of influence factors in Kroll, 2014, p. 177).

Additional information

Notes on contributors

Giuseppe Grossi

Giuseppe Grossi is a Professor in Public Management and Accounting at Kristianstad University, Sweden, and a Research Professor at Kozminski University, Poland. His research focuses on public governance, smart cities, whole-of-government accounting and performance budgeting. Email: [email protected]

Christoph Reichard

Christoph Reichard is Emeritus Professor of Public Management at the University of Potsdam, Germany. His current research focuses on public management reforms in Europe, performance management and public financial management. Email: [email protected]

Pasquale Ruggiero

Pasquale Ruggiero is a Professor in Business Administration at the University of Siena, Italy, and Senior Lecturer in Management Accounting at the University of Brighton, UK. His research activities focus on public sector organizations with an emphasis on management and management accounting issues. Email: [email protected]