This study aimed to evaluate the budget applied in the government hospitals in Latakia, and research into the possibility of the application of (Activity-Based Budgeting). To achieve the objectives of the study are designed questionnaire include questions related to various aspects of the existing budget, and the availability of administrative, financial, technical and environmental potential. Where the questionnaire was distributed on the financial and administrative department in the Directorate of Health staff in addition to the six staff of government hospitals in the province. The study concluded that the most important set of results, that the budget applied in hospitals do not meet the requirements, and that there are many obstacles and problems facing the possibility of applying the (Activity-Based Budgeting) in hospitals under study. Based on the findings the researcher recommended the need for appropriate infrastructure to create for the application of (Activity-Based Budgeting) to activate the use of modern technology, and provide sufficient resources as well as create the necessary political, economic and legal conditions for the application of (Activity-Based Budgeting) to take advantage of their advantages in cost management and exploitation of resources.