--- title: Performance based pay for Governments date: "2001-01-27T12:00:00Z" categories: - links wp_id: 1936 description: I highlight how states are now subject to performance-based pay, where plan allocations increase as fiscal deficits decrease. Linking funding to fiscal responsibility creates better incentives for state governments to manage their budgets effectively. keywords: [performance-based pay, fiscal deficit, plan allocation, government finance, state incentives, budget management] --- Even states have [performance based pay](http://www.timesofindia.com/270101/27busi2.htm). The less their fiscal deficit, the more their plan allocation. Good.