pose: The existing traditional budget system has been criticized for its limitations, including a lack of clear information on budget expenditures and spending, ineffective control mechanism and inefficient performance evaluation tool. Program and Performance Budget (PPB) has emerged as an alternative to the traditional budget. Iraqi public universities have the potential to be among the pioneers in PPB implementation and thus could be used as the pilot case. The objective of this study is to provide a framework for assessing the potential implementation of PPB in Iraqi public universities.Theoretical framework: The underpinning theories of this study are the theory of change and the institutional theory. The framework relies on the theory of change to identify the challenges and processes required to implement the PPB. The institutional theory is applicable in examining the relationship and the expected impact of PBB implementation on planning, control, and spending rationalization in Iraqi universities.Design/methodology/approach: The proposed framework utilized both quantitative and qualitative methods. The survey approach utilizes questionnaires adapted from previous studies to gauge the perception of faculty representatives, accounts department and top management on PBB. Data from Interviews and focus group discussions utilizing a question guide will enrich the survey findings.Findings: Findings from this study indicates that the PBB initiative has relevance and application to the universities. The proposed framework could be used as input to the regulators and other public sector entities to facilitate the implementation of PBB. It is expected that PBB will continue to receive acceptance and be adapted to improve planning, controlling, and spending rationalization at universities.Research, Practical & Social implications: The identification of processes, challenges and advantages of PBB is crucial in this change event. Evidence derived from applying this framework could enhance understanding of the relationship between PPB implementation with planning, controlling, and spending rationalization and be used towards government policies and organizational practices. Originality/value: This study proposed a framework to assess the sustainability of change from traditional budget to PBB prior to its implementation.