Performance-Based Budgeting in South-Eastern Europe: A Legal and Economic Perspective

During the 2008–2013 period, a wave of fresh ideas for introducing performance-based budgeting (PBB) occurred in the region of South-Eastern Europe. Based on a theoretical framework and empirical assessment using novel methodology, this study examines the preconditions and assesses the capacities for introducing PBB in South-Eastern European (SEE) countries. Generally, SEE countries have demonstrated moderate progress in implementing elements of performance budgeting. All of them follow a similar approach to embarking on these reforms, but with a different policy attention to certain aspects. On the other hand, SEE countries with limited progress demonstrate strong political commitment to kick-start this area by investing in the development of budget administration skills. The study conveys a balanced mix of political, legal, administrative and economic analysis of the core elements of PBB. The novel idea of introducing a simpler model of PBB in SEE is examined. To the best of our knowledge, this is the first systematic attempt to provide a comprehensive analysis of the institutional arrangements and prospects for adopting PBB in the region of South-Eastern Europe.