Why Should the Budgetary Performance of Municipalities Be Optimized: Performance-Based Management

Abstract

The performance issue always arises at the level of the local public administrations (or APUL) because of ineffective management. Most of the Malagasy decentralized local authorities (or CTD) are faced with insufficient resources and unnecessary or non-objective expenditure, due to the lack of control and reliable administration methodology. As a result, the public expenditure reform was the establishment of medium-term planned public expenditure or medium-term expenditure framework (CDMT) oriented to Result-Based Management (or GAR). For the CTD, it is the establishment of the program budget for a rationalization of the budget and its performance by abandoning the budget of resources. Performance therefore consists of using the results of a higher level of service, or of developing the quality of service by effectively managing local resources and the low contribution of the State, in times of crisis. This is why it is necessary to put into practice the principles of new public management, or New public management, which thus allows a rationalization of public expenditure, thanks in particular to the introduction of management control in administrations.

Keywords

• budget of decentralized local authorities
• budget performance
• local finance