Design, Trajectories of Reform, and Implementation of Performance Budgeting in Local Governments: A Comparative Study of Germany, Italy, Lithuania, and Norway

Abstract

Since the post-war expansion of the welfare state, citizens have raised their expectations about the role of government. However, in most OECD countries the growth rate of GDP slowed down until its dramatic drop in 2007 due to the worldwide financial crisis. Therefore, budgeting processes and formats have become even more important for supporting political choices, fostering organizational efficiency, and monitoring results. This chapter focuses consistently on performance budgeting as a tool for strategic steering and control—the internal dimension of (post) New Public Management reforms. Based on the transformative approach of Christensen and Lægreid in their book New public management. The transformation of ideas and practice (Aldershot: Ashgate, 2001), we deal with patterns of reform that have introduced steering and control instruments inspired to performance-like measures (accrual accounting, performance-based budget, management control and so on) into four European countries (Germany, Italy, Lithuania, and Norway) at the local government level over last 20 years.