Performance-Based Budgeting is a financial management approach that allocates funds based on the effectiveness and efficiency of programs and services. Instead of simply distributing money based on historical spending, this method evaluates the outcomes and results achieved by each program. This helps ensure that resources are directed toward initiatives that deliver the best value and impact. By focusing on measurable performance indicators, Performance-Based Budgeting encourages accountability among government agencies and organizations. It promotes transparency, as stakeholders can see how funds are being used and the results they generate. This approach ultimately aims to improve public services and enhance overall fiscal responsibility.