This manual discusses the basic concepts of planning, programming, budgeting systems (PPBS) and outlines an approach for implementing PPBS that is consistent with the mandate of the 1971 Indiana General Assembly. The manual is intended to be the first step toward statewide implementation of PPBS in Indiana. The manual is organized in numerous short sections that focus in turn on the PPBS concept, needs assessment, goals, objectives, program structure, program evaluation, planning for PPBS, data collection and reporting, program accounting systems, classifying and reporting financial transactions, budgeting for PPBS, budget worksheets, program reports, reporting to the state, and the Indiana implementation plan for PPBS. The appendix includes a glossary of PPBS-related terms and a brief annotated bibliography of publications dealing with PPBS. (JG)