What does Priority-Driven Budgeting primarily rely on for funding allocations?

Priority-Driven Budgeting primarily relies on the identification and ranking of program priorities to allocate funding. This approach emphasizes the importance of evaluating programs based on their significance and alignment with the organization’s goals and objectives. By clearly defining what is deemed most critical, resources can be directed toward the initiatives that offer the greatest return or impact, ensuring that budget decisions reflect the strategic priorities of the organization.

This method differs from approaches that base funding allocations on historical budget allocations, which may not adequately reflect current needs or priorities, as well as from those that depend on political influence and lobbying, which can lead to inequitable resource distribution. Additionally, while incremental changes to existing programs may be applicable in some scenarios, they do not inherently focus on a comprehensive assessment of priorities, which is central to the Priority-Driven Budgeting framework.