A Study of the Development of Planning, Programming and Budgeting System (PPBS) in the United States Department of Defense
Abstract:
Having served as the United States Defense Department DoDs primary resource allocation and decision-making process for more than 30 years, Planning-Programming-Budgeting System PPBS has kept going its evolution since it was first introduced in 1961. Accordingly, this study examined the development of PPBS in the U.S. DoD from its beginning to the recent past, that is to 1986, focusing on its basic purposes, how it has been modified and to assess the various expert observations made about the system. As originally conceived, the budget process was divided into three phases Planning, Programming and Budgeting. The Planning phase was concerned with multi-year long range requirements to lead the development of the Service programs. The Programming phase would have a multi-year prospective based on specific programs needed to support the long range planning requirements. The Budgeting phase would focus on pricing the first year of the programs chosen in the Programming phase. Although PPBS brought some improvements to the ability to tie missions, strategies, forces, and budgets together, planning continued to be the weak link in the PPBS resource allocation process.