Public financial management and control Law no. 5018 brings the approach of performance management in order to ensure the effective, economic and efficient utilization of public resources within the framework of Fiscal Transparency and Accountability principles. Performance management is an outcome-focused management approach which aims at continuous improvement in the performance. One of the most important parts of performance management is performance evaluation. In this paper, the definition, scope and types of the performance evaluation are taken into consideration. Besides the study also deals with the development of evaluation in some of the OECD countries and the lessons that should be learned from program budgeting experience in Turkey in 1970’s. Finally, the study includes information on the extent of the establishment of the relationship between budgeting and performance evaluation in OECD countries.