stages of planning, programming and budgeting system (ppbs)

stages of planning, programming and budgeting system (PPBS) and advantages of PPBS

1. TOPIC: STAGES OF PLANNING,PROGRAMING & BUDGETING SYSTEM(PPBS) AND ADVANTAGES OF PPBS System

2. Planning, Programming, Budgeting System (PPBS): Identification of goals and objectives for each major area of activity - Planning Analysis of the programs proposed to obtain organizational objectives - programming Estimation of the total costs for each project. Cost/benefit analyses are performed for each program - a portfolio of projects is selected for funding. - Budgeting

3. Planning,Programming & Budgeting System (PPBS): The system focuses on funding those projects that will bring the greatest progress toward organisational goals for the least cost Basically a Program and Planning Budgeting System It is a link between planning and programming covering it into annual budget format.

4. STAGES OF PPBS: Stage 1: Specifications of objective. Stage 2: Systematic analysis. Stage 3: Functional classification. Stage 4: Organization. Stage 5: Evaluation.

5. Stages of PPBS: Specification of Objectives   - The objectives of the programes are to be specified in consistence with the long term goals in quantitative terms as far as possible. Systemic Analysis  - The possible alternative projects to achieve the programes objectives are analyzed in a systematic way with the use of cost-benefit and cost-effectiveness analysis. Functional Classification  - The budget is classified on a functional basis like functions, programes, projects and activities. Organization   - Budget formulation addresses the organizational structure, managerial and administrative procedures of the programs/ projects/ activities. Evaluation   - The mechanism for evaluation of performance on the basis of financial and physical performances to monitor, and take corrective actions, if necessary.

6. Advantages of PPBS: It integrates the process of program/ project formulation, budget allocation and evaluation in a systematic way. It helps in the choice of programs/ projects, allocation of resources on them and performance evaluation for the executive and legislature. It integrates the decision makings regarding the choice of program/ projects to achieve the intended objectives. It attempts to promote maximum social advantage with the prudent (wise-full) use of scarce resources. It incorporates the future budgetary repercussion (may be 3,5,10 years) as per the nature and size of the projects.