ABSTRACT Performance‐based budgeting (PBB) has been widely implemented, yet its consequences remain underexplored. This study investigates PBB implementation in Indonesia through multiple case studies of three ministries—education, health, and infrastructure. The finding indicates that performance information is used predominantly for control, which often leads to unintended effects, including sectoral egos, risk aversion, and an inward organizational focus. Despite target achievement, service quality and real‐world issues persist. These findings demonstrate how bureaucratic culture, multilevel governance, and institutional capacity shape the outcomes of PBB reforms, offering new insights into the dysfunctional consequences of PBB in complex public sector settings.
Azam et al. (Mon,) studied this question.