In this sense the report is clearly taking budgeting in new directions. Essentially, budgeting remains a management function, and some managers guard it zealously. But by tying it to larger institutional goals and by focusing on communication and the need to evaluate program results, the National Advisory Council is trying to move budgeting beyond its traditional limits. By making performance-based budgeting one of the four fundamental principles, the National Advisory Council explicitly supports it. Under performance-based budgeting, the focus is to relate dollar appropriations to the amount or the quality of service provided, the needs met, or the goals and the objectives achieved.
Performance measures assess the extent to which goals and objectives are achieved.
For example, in reviewing the proposed budget for municipal tax collection, decision makers may consider such measures as the number of citizens served through telephone inquiries and walk-ins, the correctness of responses to inquiries, the quality of the service given to citizens, the percentage of property tax levy collected by June 30, and citizens overall satisfaction with the tax office. Although many governments, from the local to the federal level, have at least started to gather performance data, they still do not link most measures to budgeting. The report emphasizes the importance of doing so. Performance measures are developed in line with particular goals and objectives. The report recommends developing performance measures and benchmarks, and then monitoring, measuring, and evaluating program, budgetary, and financial performance, including stakeholders satisfaction.