The Effect of Performance Information on Actual Budgeting Allocation: The Role of Policy Type

Abstract

The purpose of this study is to examine how performance information changes actual budget allocation in both government proposals and congressional appropriations. Focusing on the effects of performance information on budget changes by subsection and policy type, the analysis reveals significantly positive relationships between performance information and budget changes. The analysis also shows significantly positive correlations between the planning and management sectors and budget changes. We also examine the effects of performance information on budget changes by policy type. Meanwhile, the results indicate that performance information had significant positive relationships with the budget allocations for distributive and redistributive policies.

Keywords:

• Budget allocation
• performance information
• performance management
• policy type
• public budgeting

Notes

1 We have included the description for the data

Table

2 We tried to match program type in KPART into program type in PART using Greitens and Joaquin’s (2010) coding.

Table

3 The major difference between the budgets and funds in Korea is concerned with the National Assembly in Korea. To change the budget amount, the government must seek approval from the National Assembly regardless of whether the change is small or large. To change the funds amount, on the other hand, the government does not need to seek approval from the National Assembly unless it induces more than 30% from the initial amount.

Additional information

Notes on contributors

Hosung Sohn

Hosung Sohn is an Associate Professor in the School of Public Service at Chung-Ang University. His research area is public finance, demography, and program evaluation using experimental and quasi-experimental research designs.

Dongsook Han

Dongsook Han is the Team Head of Policy Research Team in the Research Center for State-Owned Entities, at the Korea Institute of Public Finance. Her research interests lie on human resource management and education policy evaluation focusing causal inferences. She has conducted research projects regarding wage system and employment.

Kwang Bin Bae

Kwang Bin Bae is an Assistant Professor in the Department of Public Administration at Dongguk University, Seoul, Korea. His research interests are human resource management, performance management, and non-profit management.