Chapter

Integrating Financial Management with Performance Management

S. K. DAS

in Building a World-Class Civil Service for Twenty-First Century India

Published in print September 2010 | ISBN: 9780198068662
Published online October 2012 | e-ISBN: 9780199080465 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198068662.003.0008
Integrating Financial Management with Performance Management

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To achieve results and motivate good performance, financial management systems must be integrated with performance management systems so that they share the same mission. Results-orientation in the civil service is possible if results-based budgeting is adopted to replace the traditional line-item budgeting. Four basic performance tests are required in results-based budgeting—inputs, outputs, efficiency, and impact assessment. There are, at least, four key interrelated elements involved in the integration of financial and performance management systems—budget making and target setting, budget making and performance monitoring and reporting, budget implementation and performance management, and the accounting and performance management systems. If India wants to focus on results-orientation in its civil service, it must institute reforms and then integrate its financial and performance management systems.

Keywords: financial management; performance management; integration; results-orientation; results-based budgeting; accounting; reforms; outputs and outcomes; inputs

Chapter.  5924 words. 

Subjects: Indian Politics

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