PERFORMANCE-BASED BUDGETING IN THE DEFENSE SECTOR: ORGANIZATIONAL STRUCTURE ISSUES
PERFORMANCE-BASED BUDGETING IN THE DEFENSE SECTOR: ORGANIZATIONAL STRUCTURE ISSUES

Summary/Abstract: Today’s challenging, unpredictable, and volatile international security environment and recent developments in Ukraine require the states of Eastern Europe, especially those that are not members of powerful military alliances, to focus on strengthening the most important instrument of national power, military power, in order to be able to defend their national interests. Enhancing military capability is usually associated with an increase in funding for defense programs. However, having a significant defense budget does not guarantee security, and the main question is how efficiently and effectively defense funds are allocated to particular programs, projects, or activities. The way to improve the efficiency and effectiveness of managing defense funds is through the introduction of the performance-based (program) budgeting approach. At the same time, it must be kept in mind that programs cannot disregard the structure of the MOD departments and services, since budgets are implemented by allocating resources to organizational units to use for conducting activities aimed at producing outputs. In this paper, I proposed some structural changes in order to place the organizational structure of the MOD of Georgia on more of a “product line” basis; bring it more in line with the basic principles of management , and improve capability planning and program development processes.

• Details
• Contents