Performance-Based Budgeting in Developing Countries: A Systematic Review of Accountability and Governance Outcomes

Abstract

Performance-based budgeting (PBB) has emerged as a key public financial management reform in developing countries, aiming to enhance accountability and governance by linking funding to measurable outcomes. However, the effectiveness of PBB remains uneven across different national contexts. This study conducts a systematic literature review to examine how PBB has influenced accountability mechanisms and governance structures in developing countries. Drawing on peer-reviewed studies published from 2011 to 2021, the review synthesizes evidence on the design, implementation challenges, and institutional outcomes of PBB reforms. The article critically evaluates the enabling and limiting factors of PBB, including administrative capacity, data systems, and political will. The findings suggest that while PBB can improve fiscal transparency and performance monitoring, its success is highly dependent on context-specific institutional conditions. The review concludes that tailored approaches, sustained political commitment, and capacity-building are essential for maximizing the governance benefits of PBB.