In the public sector, budget deviations are an important performance dimension. Because of political and institutional pressures, it is crucial that public sector organizations neither overspend, nor underspend. Budget deviations actualize the issue of tight budget control. In this article we...

This paper examines whether the legislative adoption of performance-based budgeting (PBB) limits budgetary slack. Based on the model of slack-maximizing bureaucracy, we predict that the enactment of PBB laws is likely to shore up the legislature’s ability to control budgetary slack. By...

Virements are useful instruments of budget flexibility. If carried out transparently and within accepted limits, virements can promote expenditure efficiency. Large, unregulated virements can undermine budget credibility and the budget's relevance as principal policy and financial planning...