The author conducted literature review to analyze and evaluate the implementation of performance-based budgeting in Indonesia. The Indonesian government has to reform government financial management since 2003 by Act No. 17 of 2003. The law governing the Integrated Budget Implementation, Performance-Based Budgeting, and the Medium Term Expenditure Framework (MTEF). Indonesia is a developing country, which has different characteristics from developed countries, so that the obstacles encountered in the implementation of performance-based budgeting differently. Based on the results of the literature review, concluded that the grand design of performance-based budgeting set by the Indonesian government in accordance with existing literature. However, various studies in Indonesia showed that the implementation of performance-based budgeting, both at the central and local governments are still not in accordance with a predetermined grand design.
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