Outcomes-based budgeting may be challenging to implement, but Tom Foster argues it has the potential to be a powerful financial planning tool in an era of scarce resources

Outcomes-based budgeting (OBB) is becoming an increasingly common topic of discussion in local government finance circles. There are a number of variations, but the most common definition is a system of budget setting that ensures scarce financial resources are allocated specifically to achieve priority outcomes, by drawing a direct link between how forecast expenditure is prioritised and the outcomes realised by that spend.