What is the primary characteristic of a program budget?

The primary characteristic of a program budget is its emphasis on the types of services provided. This approach organizes the budget around programs or activities, rather than merely by line items or departments. The focus is on the outputs and outcomes of the programs, allowing budgeters and stakeholders to understand how funds are allocated to achieve specific objectives and to evaluate the effectiveness of those services.

By centering on programs, this budgeting method facilitates a better examination of how resources are used, promoting accountability and transparency in government operations. It encourages decision-makers to consider the cost-effectiveness of services and assess the impact of program funding on community needs. This characteristic aligns with the broader goals of efficiency and effectiveness within public financial management.

In contrast, other options like focusing on overall financial performance, detailing expenditure objects, or year-over-year comparisons do not capture the essence of program budgeting, which is fundamentally about linking financial resources to programmatic outcomes.