A critical examination of some of the problems involved in implementing planning, programming, and budgeting (PPB) in state government. Experience resulting from RAND's assistance to the Arkansas Planning Commission in the development of a PPB system for the State is used to illustrate the issues involved in the relationship between governmental characteristics and appropriate PPB design. The report covers the structural, analytical, and informational parts of PPB as well as the role of the legislature in the PPB process. It is concluded that there is more than one possible and desirable form of PPB; the particular design choice will depend on the information requirements of the decisionmaker and the resources available for planning and analysis. A governmental agency's imitation of other PPB designs without regard to its own capabilities can seriously impair the effectiveness of its PPB system.
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