A budgeting system developed particularly for use in non-profit organizations, such as national and local government. The system is based on the grouping together of activities with common objectives and a long-term plan relating to the objectives of the organization as a whole, which is subdivided into programs. Conventional annual expenditure budgeting procedures are applied within this framework.
Program budgeting is a method of budgeting expenditures to meet programmatic objectives rather than using a line-item basis. It focuses on specific performance objectives and systematically formulates costs for all related functions, providing a clear link between expenditures and outcomes.
