Performance BudgetingPerformance budgeting encompasses the causal relationship between program funding and the likely outcomes of that program and uses this information as a means of developing an actual budget. A central point of performance budgeting is accountability; This type of budgeting is often used by administrators to achieve profitability and make useful budget forecasts. Advantages/Disadvantages An advantage of performance budgeting would be transparency; This type of budgeting allows stakeholders to determine the quantity of services provided for the cost financed. Basically, it measures the extent to which government agencies get what they pay for. This type of budgeting also provides a means by which management and operational staff can give feedback to improve the success of a program. A disadvantage of this type of budgeting is that it leaves room for erroneous reporting by department heads to ensure that their programs are not cut due to a lack of results. Performance budgeting can become a burden on substantial budget efforts because the funding needs of different agencies may vary.