a)
i) Activity Based Budgeting Vs Programme Based Budgeting
The following are the differences between ABB and PBB:

• ABB links resource allocation to the activities required to be undertaken in order to achieve a desired output, but PBB assigns resources to measurable results to be achieved.
• ABB emphasizes the relationship between activities and cost, thereby producing much detail on overheads, whereas PBB focuses on the linkage between programme funding level and expected results of the programme.
• ABB produces detailed information on cost on each activity, thereby making control cumbersome, but PBB aggregates cost information at the programme level rather than activity level.
• ABB provides full costs of programmes and services which are more transparent and available for planning, budgeting, and decision-making, whereas PBB consolidates the cost information, thereby limiting transparency and availability of full cost information for planning, budgeting, and decision-making.

(2 marks each for any 2 differences explained = 4 marks)

ii) Advantages of PBB over ABB

• It provides a framework for measuring the performance of the MDA expenditure programmes.
• It enables effective management of resources to achieve government outcomes or objectives since the emphasis is on programmes attainment rather than a mere performance of activities.
• It promotes process accountability and transparency that enables the public to judge the fiscal stewardship of the managers.
• It provides a specific linkage between resources allocation and strategic policy objectives of the MDAs. That is, it establishes a closer link between resources allocated and what has been done with it.
• It makes budget evaluation and control much more focused and conclusive. It becomes very easy to measure which programme outcomes are achieved and those that are not.

(2 marks each for any 4 points explained = 8 marks)