Budgeting and Financial Management play a crucial role in organizing and disciplining the federal management culture. Consequently, addressing improvements in their practice is essential in the National Performance Review's examination of government‐wide management systems. This article briefly describes the recommendations and anticipated implementing actions relating to budgeting and financial management within the context of the National Performance Review's themes of cutting red tape, putting customers first, empowering employees to get results, and cutting back to basics. External factors, such as innovations in private sector management practices, rapid changes in information technology, and statutory reforms such as the Government Performance and Results Act, also influence needed changes in budgetary and financial management practice