Program and Performance Budgeting System in Public Sector Organizations: An Analytical Study in Saudi Arabian Context

  •  Alaa Mohama Alain    
  •  Magdy Melegy Melegy    


In order to improve the budget system, a number of approaches and techniques have been adopted in public sector organizations such as Program and Performance Budgeting System (PPBS), Performance Based Budgeting System (PBBS) and Zero-Based Budgeting (ZBB). The present study is an extension in the line of very few researches which had been conducted in developing countries in regard to implementation of “One Budgetary Approach” which is known as “Program and Performance Budgeting System PPBS”. The study concentrates its focus on the support which it may find in case of “budgetary format” is adopted by the “Public Sector Organizations” in the kingdom of Saudi Arabia. The study explores several dimensions such as familiarity, acceptability and adoptability of PPBS, “degree of contribution of Accounting System followed by “public sector organizations” to adopt PPBS”, the benefits that might be realized and the obstacles that probably might be faced if this approach of budgeting is adopted by Public Sector Organizations” in Al-Kharj region. The study came up with the following main findings; there is a fair familiarity and understanding of PPBS by financial managers and accountants working in the “public sector organizations”, the accounting system followed by “public sector organizations” contributes to adopt PPBS successfully, there are certain benefits could be obtained while adopting PPBS by public sector organizations, and finally certain obstacles have been discovered which are standing as stumbling-stone to adopt PPBS in “public sector organizations” in Al-Kharj region effectively.

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