Outcome-Based Budgeting is a financial planning approach that focuses on the results or outcomes of spending rather than just the inputs or costs. This method encourages organizations to allocate resources based on the effectiveness of programs and services in achieving specific goals. By prioritizing outcomes, decision-makers can better assess the impact of their investments. In Outcome-Based Budgeting, performance metrics are established to evaluate success. This allows for continuous improvement, as organizations can adjust their budgets based on what works best. Ultimately, this approach aims to enhance accountability and ensure that public funds are used efficiently to meet community needs.