A step beyond formalities: Analysing how performance criteria influence budgeting allocation in Peru from the perspective of civil servants

The Research Paper aims to understand how performance criteria shape civil servants’ practice during budget allocation, taking the health sector in Peru as a case study. This study has been based on the premise that civil servants’ work in their everyday day is beyond the regulations, and it is necessary to compare the theory versus the practice to understand better how the state functions. As a result, it is explained that performance criteria do not have the expected impact on civil servants’ practice, which is to make decisions based on performance. In practice, incorporating performance criteria in the budget allocation is uneven and depends on the actors and their motivation. Furthermore, in the case of Peru, the current political context intensifies the barriers to using performance criteria. Moreover, it analyses how NPM ideas have influenced the state's vision as a rational institution based on performance, leaving behind other important and valuable criteria for civil servants’ decision-making. Finally, recommendations are given to improve the process.