4 main Merits of Performance Budgeting

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4 Main Merits of Performance Budgeting are as follows:

1. It helps the management to regulate its each and every activity according to predetermined standards of performance, targets and objectives.

2. It is not only an estimate of future needs but goes beyond that and- includes functions, programmes, activity schemes and time schedules to help effective and economic allocation for the programmes.

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3. It lays great stress on the management of organisational structural and overall policy, personnel, financial, etc. from traditional to dynamic one.

4. It is not merely a projection of trends and targets but planning the business from grass root level to top level on rational thinking and forecasting.

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