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Using evidence from Austria, Ireland and Portugal, the authors show that, although the experience of a fiscal crisis can act as a useful trigger for adopting performance budgeting reforms, the context of fiscal stress and austerity does not offer a fertile ground for implementing reforms. In addition, it can undermine the use of performance information in budgetary decision-making. This article will help policy-makers and practitioners to develop realistic expectations about the impacts of performance budgeting in a climate of austerity and fiscal stress.

Austerity and the use of performance information in the budget process