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What is PPBS budgeting?

Updated: 8/23/2023
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Planning. In the planning phase, the military role and posture of the United

States and the Department of Defense in the world environment shall be examined,

considering enduring national security objectives and the need for efficient management

of resources. The focus shall be on the following major objectives: defining the national

military 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 forces

necessary to accomplish that strategy; ensuring the necessary framework (including

priorities) to manage DoD resources effectively for successful mission accomplishment

consistent with national resource limitations; and providing decision options to the

Secretary of Defense to help him assess the role of national defense in the formulation of

national security policy and related decisions. This review shall culminate in the issuance

of the Defense Guidance.

Programming. In the programming phase, the DoD Components shall develop

proposed programs consistent with the Defense Guidance. These programs shall reflect

systematic analysis of missions and objectives to be achieved, alternative methods of

accomplishing them, and the effective allocation of the resources. The JCS shall analyze

the programs and provide a risk assessment based on the capability of the composite

force level and support program for the U.S. Armed Forces to execute the strategy

approved during the planning phase. A program review is conducted; the results are

issued in Program Decision Memoranda (PDMs).

Budgeting. In the budgeting phase, the DoD Components shall develop

detailed 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).

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PPBS stands for "planning, programming, and budgeting system." It is part of the management technique known as Output Budgeting and is a method of identifying, costing, and assigning resources.

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