What is the primary focus of program budgeting?

The primary focus of program budgeting is to organize financial resources and activities into specific programs while emphasizing the outcomes and results of those programs. This approach allows organizations to link funding to specific objectives, thus ensuring that financial decisions are aligned with the overall goals of the organization. By categorizing expenditures by programs, stakeholders can evaluate the effectiveness and efficiency of each program based on the results achieved, rather than merely on the costs involved. This outcome-oriented perspective facilitates better decision-making and resource allocation, as it highlights the relationship between spending and program performance, ultimately leading to improved accountability and transparency in budgeting processes.