Planning-Programming-Budgeting System

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  • An integrated decision-making approach to budgeting that entails the systematic analysis of government goals to inform decision making in meeting those goals. Alternative methods for obtaining those goals are also generated. Although the planning-programming-budgeting system (PPBS) was developed in the 1960s, one of the earliest influences on a program-budgeting initiative was by the Taft Commission on Economy and Efficiency in 1912. In the 1920s, large organizations, such as General Motors and Ford, tried program budgeting. RAND Corporation economists in the 1960s developed the widely used model that was then adopted by the Department of Defense through Secretary of Defense Robert McNamara. In 1965, President Lyndon B. Johnson directed the heads of federal executive depart ments to establish the PPBS.

    The three-pronged approach of PPBS requires certain ...

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