Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The phases of the budget process
Essay on Governmental Budgeting Process
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: The phases of the budget process
As we had learned in our class of Administration of Financial Resources (PAD 343.02) budget can be understood as a collection of documents that describes what had been accomplished as a result of expenditure, it also describes the current situation of a government with respect to revenues and previews expenditure, and it is used for submission from the Executive branch to the Legislative branch for appropriation or approval. In other words, a budget is a “systematic plan which indicates where the money will come from, how much will be spent, and what it will be spent for. A budget is a fiscal plan for a given period of time.” and I have to add to this that there is a variety of budget formats. Even though this is a very complex explanation …show more content…
This is the budget format “that allows authorities to engage in long-term planning and to determine program effectiveness and efficiency.” As you can see this format of budgeting provides what the Line-item format is missing. The way it works is by “relying on developing functional categories, for example, programs, in order to determinate the total cost of a program. In class, we learned that this format of budget allocates programs, which means that it rationalize programs by planning goals and objectives, developing programs to achieve these goals and budgeting for projects within each program. In other words, the government has to “analyze agency activities and functions according to stated objectives, then they go up all related activities and functions under a single structure and finally, they develop cost and output information for each program so that the expected impacts of various programs can be ascertained.” This format of budgeting has advantages and disadvantages as …show more content…
It allows the authorities to “see exactly how their tax money is being spent, what priorities are being set, and whether and to what extent programs are delivering services.” This allows authorities to make a better judgment about quality and quantitative of the services provided. Furthermore, there are disadvantages as we learned in class this format of budgeting has not been widely adopted. “Implementing it is expensive and requires authorities to make difficult decisions among alternatives program” When I mentioned "expensive", it includes a great amount of time as well, and as we all know there is no time to lose in budgeting, time is considered gold. Another disadvantage of this format of budgeting is that “it decreases an authority’s control over the budget because it makes agency heads, not the governing authorities, accountable for the success (or failure) of a program” As I mentioned before this is a proof that anything that the government can’t control in the fulness, won't be
Capital Budgeting encourages managers to accurately manage and control their capital expenditure. By providing powerful reporting and analysis, managers can take control of their budgets.
Mikesell, J. L. (2010). Fiscal administration: Analysis and applications for the public sector (8th ed.: 2010 custom edition). Mason, OH: Cengage Learning
The Australian Budget is an annually published document which details the Federal Government's plans to affect the level of economic activity, resource allocation, and income distribution through the use of fiscal policy. It describes the framework which the government intends to follow during the next financial year which will result in the attainment of their objectives. The budget is a publication of the government's plans regarding the use of fiscal policy, and is published to parliament and the general public on “budget night”, so as to allow open dissemination about the status of public finances and to promote transparency in Australia's fiscal policy.
For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.
Budgeting is a familiar term to most American families. Dictionary.com defines budgeting as an estimate, often itemized, of expected income and expense for a given period in the future. In order to avoid debt, bankruptcy, or overspending it is common to create a spreadsheet of some sort tracking your spending and income. On a grander scheme, the Unites States has to budget as well.
When considering the nature of the federal budget, indeed one can trace the foundations of budgeting back to biblical principles. Inside the community of faith, the bible has often been considered the cornerstone and reference point for authoritative declarations. Thus, when applying a biblical perspective to the nature and context of the federal budget, one must begin with the nature of property and stewardship within biblical context. As conveyed in the lecture notes, “God delegated to man the authority over external things, and hence, one could conclude stewardship and ownership from Genesis… God also has authority over all humanity, in the sense that we ‘are not our own,’ and what we own is not to be ‘privately’ administered in exclusion of God.” Therefore, when discussing the federal budget in correlation to the biblical text, indeed the allocation of resources, the distribution of wealth and the overall stewardship of believers are controlled by God. As scriptures states, “God blessed the and God said to them, “Be fruitful and multiply and fill the earth and subdue it, and have dominion over the fish of the sea and over the birds of the heavens and over every living thing that moves on the earth” (Genesis,1:28,ESV).
The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred. The Budget Process Budgetary planning may differ between organizations. Single-period budgets and rolling budgets have methodologies that provide advantages and disadvantages that may make one budget time frame better than another. A single period may require less time in planning during a fiscal year, but is less accurate than a rolling budget that is continuously planned on a repetitive basis. In either case, budgets are planned in advance in order for a company to operate profitably, and less so to have "actual results equal budgeted results."
“A budget is more than just a series of numbers on a page; it is an embodiment of our values”, Barack Obama. The utterance of these words could not have been a breath more of truth. For the Federal Budget is a reflection of the founder’s aspirations stated on the preamble. To specify, in the simplest of forms the preamble is a mission statement for the nation; it vaguely identifies the steps required for the prosperity of the nation. With the creation of the preamble, along came the Federal Budget; the budget being the nation’s budget that states the overall expenditures. The preamble being utilized in the birth process of the Federal Budget, Due to the lack of alignment between the federal budget and the preamble, funding in The big Five,
Planning Program Budget (PPB) system was a success in Department of Defense. In 1961, the Secretary Robert McNamara and a group people from the RAND corporation joined forces to make PPB a success. Some of tactics were used by PPB system are operation research, computers, and systems analysis .The Future Years Defense Program (FYDP) was established to help Planning Program Budget (PPB) system. FYDP program projects the cost and staff according to the programs. The program is structure under the FYDP . The structure consists of a mission and factors of subunits and activities. Some of the concepts are in the FYDP program which are strategic forces, general purpose forces, research and development, guard and reserve, central supply and maintenance,
System Planning’s Executive Summary Student’s Name Institutional Affiliation A healthcare organization is an organization that takes care to provide health services to different members of the society. This executive summary will highlight the various issues of system planning and how important it is to the whole community in general. In doing so, the paper will make a description of a fictional healthcare organization in the United States including the type of the organization, its size of staff and some patients it will handle. Also, the patient type will also form a unique part of the paper.
Provides advice, assistance, and guidance on budgeting and related information to program managers and budget-related personnel in subordinate organizations. Conducts analyses, reviews, and special studies of budget and/or related information.
In conclusion, the advantages of participative budgeting include an increase and transferral of information, an increase in subordinate morale and job satisfaction, the development of negotiation skills and goal congruence. However these advantages only come into full affect when particular conditions are present, without these conditions it may turn into a disadvantage through budgetary slack, low job satisfaction and responsibility.
An advantage of performance budgeting would be transparency; this type of budgeting allows stakeholders the ability to ascertain the amount of service delivered for the funded cost. Basically it measures to what extent does government agencies getting what they paid for. This type of budgeting also provides an avenue by which management and line staff can contribute feedback for the enhancement of a program’s success.
Budget is combining your income and expenses to decide how much money you are going to spend on an item. Budget is an important step to determine your financial health and financial stability. It’s an important financial tool because it can help plan for expenses, cut cost were unneeded, save for future goals, plan for emergencies that occur inexpediently, and list what you are spending and saving.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support