The planning, programming, budgeting system (PPBS) is an instrument to help policy-makers assign priorities and allocate resources. It does not seek to computerize what is essentially a political process, nor is it intended that the statisticians and cost accountants take over functions that properly belong to the political decision-maker. PPBS is a method of organizing information in a more effective way for decision-making, with the aid of modern analytical techniques. The principal elements of any PPBS are: (1) the precise identification of program objectives; (2) systematic consideration of alternative means of reaching those objectives in terms of their relative benefits and costs; (3) forecasting the future-year cost implications of present decisions. In addition to explaining the PPB System, this monograph attempts to dispel exaggerated claims and misconceptions and describes some of the practical problems accompanying implementation. (Author/DW)