The role of performance and program budget in the rationalization of public expenditures: case study The Directorate of Programming and Monitoring the Budget Ain Defla

Abstract

In light of daily economic, social, and political changes, different countries, including Algeria, started to reform their public financial systems. The release of the organic law 18-15 related to the financial law in 2018 paved the way for the performance and program budget to revolutionize the Algerian budgetary system. This study aims to determine the contribution of the performance and program budget to the rationalization of public expenditures by analyzing the evolution of public expenditures in the Directorate of Programming and Monitoring the Budget and Ain Defla in the period (2016-2022) and analyzing the application of performance and program budget in Ain Defla using quantitative analysis method. The results of the analyses show that there was a consistent breach of the budget principles, a lack of planning and efficiency in using credits, and a shortage of objectives achievement and obtained results which the performance and program budget came to treat by linking the objectives with performance indicators to promote transparency and accountability that contribute significantly in the rationalization of public expenditures.