Performance-based budgeting is the bottom line to obtaining the necessitated improvements. It can be used to unequivocally form the correlations betwixt funding and outcomes to administer programs more successfully. Moreover, performance budget use avowal of goals, objectives and missions to clarify the final destination of money, or minimally where money is being spent. Many countries around the globe have adopted PPB in their financial reforms. Among those countries is United Arab Emirates (UAE). The force of adopting the performance-based budget in UAE is overwhelming since 2003. The Ministry of Finance and Industry, UAE Government and Public have contributed to these forces. As result, this paper will explorer this forces of adaptation.
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In 2004, the Ministry of Finance and Industry alleged during the “Fiscal Reforms in the Arab and Near East Countries” conference that it is in progress of implementing the PBB in its financial system. The aim of PBB in UAE was to execute effective budget, revamp the management of public expenditure and issues in designing the budget. H.E. Khalid Ali Al Bustani who is undersecretary in Ministry of Finance and Industry, said that the Ministry of Finance and Industry is fully committed in implementing certain programs to enhance day-to-day activities across all ministries and government bodies. UAE Government commitment in reforms implementation can be considered as a full gear in adopting the PBB, when compared to other governments, which are begrudgingly in barricading such vital reforms.
Al Bustani added that the Ministry of Finance and Industry has initiated various methods, which will assist in implementation of these reforms, such as giving training to government officials, initiating the total quality management and monitoring. The Finance Ministry was ordered to evaluate the programme and performance budget from previous fiscal year, so that it can help to make the PBB feasible. The UAE Government has provided superior advisory services to forty federal ministries and independent agencies (more than 800 staffs of Federal Government).
Consequently, a standardized medium-term structure to cost budgets within the Federal Government has been formed and there are various goings-on that have been restructured within agendas and subprograms in order to facilitate monitoring, coasting and precedence setting. Moreover, these programs have assisted in improvement of financial systems, such as Financial Management Information System that root back it fully operations in 2007. Majority of UAE citizens were eager to get an advanced financial system that meets their demands, transparent, and allows decision-making. The government through the Ministry of Finance did not let them down, as it adopted PBB that corresponded with their wishes. The voice of public is another factor that geared up the force of adopting PBB (United Nations Development Programme, P.1).
The forces of adopting Performance-Based Budgeting in the United Arab Emirates have been unique since its inauguration. The ministry of Finance and Industry, and the UAE Government have implemented various reforms in favour of PBB. Some of the reforms are initiating new programme, refurbish financial system, providing training to staffs, monitoring the implementation process and many more. In my own words, such action of government commitment is the one that has drive UAE to economic sustainability and it need to be adopted by other governments.
United Nations Development Programme. United Arab Emirate. Web.