I think all report should be linked together , I mean the Performance audit report of last period in order to define the (the improvement recommendation along with their pervious performance ). Also , the Budgeting and balance sheet as well if the public sector had 5 year plan strategy that break in to a yearly goals and objectives.

Ranya, this is a question that needs addressing from 2 directions.  First is the case where a Public Sector Organisation (PSO) has a role in setting its own goals and justifies a budget that it believes will allow it to achieve them.  It can then plan in stages that are covered by KPIs and milestones and it can monitor progress and adjust over time. The second is where a central government body (such as the treasury) sets budgets without direct linkage to specific PSO goals. 

The two approaches co-exist but in the first case, the PSO can make a plan, set KPIs and monitor progress.  In the second case, the PSO is more often working out what goals it must miss because the budget reality doesn't match the aspirations.  The latter has been the case in most EU countries since 'austerity' started whilst the first case has been the desired position for many years. 

The arrangements vary from country to country.  In New Zealand it works through a performance agreement as follows:

Performance Agreements

The performance agreement covers three key areas of interest:

the department’s performance in relation to the government’s purchase interest,

i.e. delivery of its agreed outputs in terms of the specification in the purchase agreement

entered between chief executives and their ministers each year;

the achievement of specified key results and their link to the government’s strategic result

areas (discussed further in section 4);

the effective management of the government’s ownership interest in the department.4

The performance agreement also sets out the chief executive’s personal performance requirements in

terms of leadership, relations with the minister or ministers, and individual contribution to the

collective interest. It outlines reporting requirements, and sets out the role of the State Services

Commissioner to assess the chief executive’s performance for the appropriate minister at the end of

each financial year. Performance agreements are developed each year for all departments on the basis

of pro forma and guidelines issued by the State Services Commission, and follow a three-stage cycle.

The details are set out in http://www.oecd.org/gov/budgeting/1902756.pdf

The extent of direction varies and from my research in India over the years I have found that there is much more direct direction but it is not recorded or reported.I hope you find this helpful.