The challenges that face governments in developing performancebased budgeting systems are described in this chapter; Performancebaed budgeting is placed in the context of past and current performance-based management reforms.Using Performance Measures for Budgeting: A New Beat, or Is It the Same Old Tune?The field of administration is a field of business. It is removed from the hurry and strife of politics. . . , It is the object of administrative study to discover first, what government can properly do, and, secondly, how it can do these proper things with Ehe utmost possible efficiency and the least possible cost either in money or in energy.Woodrow Wilson, 1887 This performance review is not about politics. . , . We want to make improving the way government does business a permanent part of the way government works, regardless of which party is in power.National Performance Review, 1993.The improvement of public administration has been a central concern of political and administrative reformers for well over one hundred years. The "reinventing government" movement, which has as one of its centerpieces an effort to increase the development and use of measures of government perfomnce, is the latest manifestation of this desire. A central component of this new administrative orthodoxy involves using performance measures to fundamentally change the decision processes of government, including those involving resource allocation, The reformers, in short, want a system in which funds are allocated according to the results that are achieved by public programs, rather