What is the focus of program budgeting?

The focus of program budgeting is primarily on meeting specified objectives. This method centers around the performance outcomes of programs rather than just the financial details or line items associated with funding. Program budgeting allows organizations to allocate resources based on the effectiveness and efficiency of programs in achieving their intended goals. By concentrating on objectives, program budgeting facilitates a results-oriented approach, enabling management to assess whether the outputs of a specific program align with the overall strategic goals of the organization.

In contrast, line-item budgeting tends to focus more on the detailed financial aspects of expenditures—an approach that could overlook the broader objectives of what those expenditures are meant to accomplish. Expenditure tracking, while important for financial management, does not inherently take into account whether the spending is achieving the desired results. Lastly, evaluating individual performance is generally more aligned with human resource management and does not directly address the objectives of programs as a whole. Thus, focusing on meeting specified objectives provides a clearer framework for assessing program effectiveness and aligning resources accordingly.