An analysis is presented on the evolution of Management by Results (MbR), focusing on Performance-Based Budgeting (PBB). It addresses how this management style prioritizes the achievement of concrete and measurable results, surpassing traditional administrative methods such as incremental budgeting, characterized by increasing previous budgets, where performance and its effects are not the incidental basis for adjustments and modifications. In contrast, performance-based budgeting directs the allocation of public resources towards clear objectives, through a well-structured results chain, promoting more strategic and efficient administration. This chain includes the identification of inputs, activities, products, and final outcomes, supported by specific indicators to assess the progress and impact of public policies. The case of Panama illustrates this transition towards a more transparent and responsible administration, in the quest to improve resource allocation and efficiency in public management, with its implementation led by the Ministerio de Economía y Finanzas, supported by the United Nations Development Programme (UNDP). Hence, performance-based budgeting is projected as a model to boost socioeconomic development and improve the quality of life for citizens.
