A Study of the Effect of Managerial Factors on Implementation of Performance-Based Budgeting in Value Added Tax Administration of Tehran and Proposing Necessary Strategies for Reducing the Barriers

Recent reforms in countries’ budgeting system, including Iran, is a move towards ‘performance-based budgeting’ which emphasizes measurement of governments’ performance. The aim of the present study is to ‘study the effect of managerial factors on implementation of performance-based budgeting in Value-Added Tax Administration of Tehran and propose necessary strategies for reducing the barriers’ with regard to the year of Economics and Culture, the National Commitment and Management Jihad. The main aim of the present study is to identify the effect of managerial factors on the implementation of performance-based budgeting in Value-Added Tax Administration of Tehran and to propose necessary strategies for reducing the barriers. This study is applied, descriptive and correlational in terms of purpose, nature of study and method of statistical analysis respectively. Statistical population of the study included managers and financial specialists of value added tax administration of Tehran amounting to 100 persons. Data collection instrument has been researcher-made questionnaire. Questionnaire’s validity was approved of by advisor professor and 5 experts; and in order to determine its reliability, Cronbach’s alpha was used and the obtained alpha in preliminary phase was 0.709 and in the main phase was 0.825. In order to analyze the data, descriptive statistics (drawing up frequency tables for qualitative variables and statistical calculation for quantitative variables) and inferential statistics including Kolmogorov–Smirnov test (which examines the normality of the research variables’ distribution), Pearson correlation coefficient (parametric) and Spearmanʹs correlation coefficient (nonparametric), one-sample t-test and Friedman test were used. For this purpose, SPSS software, ver. 16 has been used. The findings show that the value of t-test statistic is 3.261, 12.679 and 15.402 for structural, environmental and process-technical factors respectively. And since the value of t equal to 1.66 is larger than the t indicated in table, null hypothesis is rejected and it can be said that the variables of structural, environmental and technical-process factors are at a desirable level. technical-process factor and structural factor have a positive relationship with implementation of performance-based budgeting; however, environmental factor does not have a significant relationship with implementation of performance-based budgeting. The results of the present study indicated that factors of the model are not equivalent and technical-process factor is the most important factor with the mean rank of 1.93 and structural factors are the least important factor with the mean rank of 1.07 in performance-based budgeting.