Outcome Based Budgeting (OBB) is a performance-based appraisal system using an outcome-based approach. This system has been developed to replace the Modified Budgeting System (MBS) system which is a system based on the evaluation of output performance. Through an outcome-based integrated approach, the Department needs to ensure that there is a systematic relationship between national development planning, financial system (OBB) and performance, as well as monitoring and evaluation in support of management. In the OBB approach, emphasis will be placed on the impact and effectiveness of projects and programs rather than on spending and output alone. Through the OBB system, Government expenditure will emphasize on 'Value for Money' as well as programs and projects that have a high multiplier effect.

The Importance of Outcome Based Budgeting (OBB)

OBB is an ongoing process that aims to meet the desired outcomes of the National Outcome Framework (NRF). OBB was developed as a strategic management tool that focuses on outcomes and aims to improve the design and operation under the MBS System. OBB is a holistic system with an integrated approach that is linked with program-based NRF. Ongoing monitoring under OBB can provide information for the purpose of evaluating and reporting results.

SQM PIC: Puan Isma Irini Shafie