What aspect does program-based budgeting primarily focus on?

Program-based budgeting primarily focuses on funding distribution based on services offered. This budgeting approach looks at the costs associated with specific programs or services provided by the organization, rather than merely tracking overall expenditures or just personnel costs. By prioritizing funding for individual programs, this method helps ensure that resources are allocated based on the effectiveness and needs of those programs.

This shift towards program-based budgeting allows organizations to assess the value and results of their services more effectively, guiding decision-makers to invest in areas that align with their strategic goals and service delivery objectives. It emphasizes a more analytical approach to budget preparation, facilitating better alignment of funding with acceptable performance outcomes for each program, rather than a general view of costs or limited categories such as technology or personnel expenses.