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What is ppbs?

Updated: 9/13/2023
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The letters PPBS are a shortened form of Planning, Programming, and Budgeting System. It is a balance between the performance budget and object budget.

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What is PPBS budgeting?

Planning. In the planning phase, the military role and posture of the UnitedStates and the Department of Defense in the world environment shall be examined,considering enduring national security objectives and the need for efficient managementof resources. The focus shall be on the following major objectives: defining the nationalmilitary strategy necessary to help maintain national security and support U.S. foreign policy 2 to 7 years in the future; planning the integrated and balanced military forcesnecessary to accomplish that strategy; ensuring the necessary framework (includingpriorities) to manage DoD resources effectively for successful mission accomplishmentconsistent with national resource limitations; and providing decision options to theSecretary of Defense to help him assess the role of national defense in the formulation ofnational security policy and related decisions. This review shall culminate in the issuanceof the Defense Guidance.Programming. In the programming phase, the DoD Components shall developproposed programs consistent with the Defense Guidance. These programs shall reflectsystematic analysis of missions and objectives to be achieved, alternative methods ofaccomplishing them, and the effective allocation of the resources. The JCS shall analyzethe programs and provide a risk assessment based on the capability of the compositeforce level and support program for the U.S. Armed Forces to execute the strategyapproved during the planning phase. A program review is conducted; the results areissued in Program Decision Memoranda (PDMs).Budgeting. In the budgeting phase, the DoD Components shall developdetailed budget estimates for the budget years of the programs approved during the DoD programming phase. A joint Office of Management and Budget (OMB)/DoD budget review is conducted; the results are issued in Program Budget Decisions (PBDs).


Identifying the key advantages and disadvantages of a performance budgeting system a program budgeting system and a line-item budgeting system.?

system features focus on advantages disadvantages (LIBS) -centered on objectives/nature of expenditure or purchased item/service (1920~30s) -control financial affairs -responsibility for accounting -clear responsibility on accounting -easier control on financing -rigidity -unclear performance/objective of expenditure performance budgeting system (PBS) -classifying business based on functions of business activities -detail business budget=item price*work hour -Truman(1950) -business centered -management centered -clear business goal -flexibility -unclear responsibility on accounting plan programming budgeting system(PPBS) -planning+budgeting -rational allocation of resources -Johnson(1965) planning centered "planningprogrammingbudgeting" -planning+budget -rational allocation of resources -remove barriers between organizations centralization of budget composition -difficulties on conversion work -top-down budget composition


Functions of a budget?

Planning -- involves determining organizational and program objectives and evaluating alternative means for their achievement. Planning also includes prioritizing. Control -- defined as monitoring, comparing information to a standard and taking corrective action. For a budget to serve this function well it must have four characteristics: It must be well-conceived (i.e., result from a good planning process) and be approved by the board It must be broken down into increments corresponding to the periodic financial statements Financial statements must be prepared on a timely basis and compared to the budget The board and staff must take action where such comparison indicates a potential problem Management -- allocating resources deliberately and prudently to achieve program objectives. This includes programming approved goals into specific projects and activities, the design of organizational units to carry out programs, staffing, and procurement of resources. Budget Planning Processes a) Incremental/Decremental b) Zero-Based c) PPBS d) Performance Budget Formats a) Line Item b) Program c) Performance d) Functional


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