The objective of this study is to investigate planning-programming-budgeting systems (PPBS) as a method for rationalizing public expenditure decisions, and the evaluation of subsequent performance within the framework of the Canadian Federal Government. Based on a research of the literature, the rationale for such a system is presented, together with a detailed description of its operational mechanics, impact and areas which might cause difficulty in its practical implementation throughout the Federal Government. An operational casting study from a small field organization is presented to illustrate the data requirements and the problem of obtaining the relevant information with a traditional budgeting system. The thesis concludes that despite the commitment to PPBS at the Cabinet and Senior Executive level within the Canadian Federal Government, this has not yet penetrated to the operational managers in the field departments who will be increasingly required to think in these terms if the approach is to be successfully implemented throughout the sphere of government operations. Several recommendations are made to enable the approach to be installed at the operational level, not the least of which is a management education programme to outline the concepts, aims and requirements of PPBS as it affects managers at this level. The measurement of benefits and the problem of joint costs are mentioned as two vital areas which have as yet not been fully considered within the government and are overdue far detailed study. In conclusion it is hoped that this dissertation outlines the disparity between the allocation process as it is outlined by senior government officials, and the process as it actually occurs within the field, making suggestions to enable the PPBS approach to be both accepted and workable at the field organisation level. / Business, Sauder School of / Graduate