PROPOSALS ON DEFENSE PROGRAM STRUCTURE: THE CASE OF THE MINISTRY OF DEFENSE OF GEORGIA
PROPOSALS ON DEFENSE PROGRAM STRUCTURE: THE CASE OF THE MINISTRY OF DEFENSE OF GEORGIA

Summary/Abstract: Defense organizations absorb large amounts of public resources. The way to improve the effectiveness of the management of defense funds implies the introduction of a performance-based budgeting approach, which links the funding of public sector organizations to the results they deliver. One of the more advanced government-wide performance budgeting systems that uses performance information systematically in the preparation of the government budget is program budgeting, in which expenditures are classified into groups of similar activities or projects (i.e., programs) with common outputs and outcomes. A central issue in good program budgeting is the appropriate definition of programs and other elements of the so-called program hierarchy. This paper overviews the principles and approaches for formulating an effective defense program structure, analyzes the existing program structure of the Ministry of Defense of Georgia, identifies its shortcomings, and suggests ways to improve it.

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