Performance – Based Budgeting – an option or a necessity

The paper aims to present the concept of Performance – Based Budgeting and its importance for the economic development of a country. Performance – Based Budgeting is applied since decades ago in countries like Sweden or USA, whilst the others may learn from the good practices examples offered by the two. The present research highlights the advantages of implementing this concept, the suitable ways for implementing it, the obstacles that are often encountered and important recommendations for improving its use. The research was based on the literature review of the publications and the official data available in the studied field. The results of the paper contributes to implementing Performance – Based Budgeting in Romania but also to improving its implementation in other countries. Therefore, the paper offers solutions to stimulate a sustainable economic development of a country. The conclusion will reveal if Performance-Based Budgeting is an option among other concepts or a strong necessity for nowadays economic challenges.