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Some characteristics of performance-based budgeting includes providing transparency and accountability, enhancing communication, improving decision making, and linking funding to results and using performance information. It aims to improve the effectiveness of public expenditures by linking the funding of public sector organizations to the results they deliver. Some advantages are increase in accountability of the local authorities to the taxpayer, communication to the public about priorities, and qualifying particular goals. Some disadvantages of performance-based budget include:

1. A lack unified cost standards across multiple agencies
2. The potential for a development to manipulate data in order to reach a target, which could lead to a need to spend funds onan independent party to verify results
3. A lack of flexibility once the inputs (resources) and outputs (outcomes) have been set

The performance- based budgeting is important when it comes to the organization I chose. It ensures proper financial management and use of funds.