Public Budgeting

Abstract

In the twenty first century, public budgeting has become an important tool to keep track of public administration performance and the degree of accuracy achieved in public budgeting. The research paper investigated procedures of public budgeting at state, local and agency level. The paper undertook a comprehensive analysis of different types of budgets currently incorporated by US governments at state, local and agency level. The paper conducted comparative analysis of the identified budgeting types by highlighting differences and similarities between each budget. In addition to this, the paper emphasized on various distinctive sources of revenue collection for each budget with any possibility of expected change in the amount of revenue. The paper attempted to recognize ways in which revenue amounts may undergo any expected change in the future. The research paper strived to create a fit between domain mission and the budget type. Moreover, the paper provided views on how to improve budget and revenue estimation at each identified government level.

Key Words: Public budgeting, public administration performance, degree of accuracy, state, local and agency level, differences and similarities, sources of revenue collection, domain mission, budget type, revenue estimation

Abstractii

Introduction1

Discussion1

Budget and Public Budgeting2

Budget Cycle4

Preparation of Budget5

Approval of Budget5

Execution of Budget6

Oversight of Budget6

Example of Budget Cycle6

Types of Budgets7

Line Item / Expenditure Code Budgeting8

Zero Based Budgets (ZBB)12

Performance Budgeting13

Program Budgeting (PPBS)14

Similarities and Differences of Each Budget15

Source of Revenue for Budgeting16

Revenue Sources at Federal Level16

Revenue Sources at State Level16

Revenue Sources at Local Level17

Expected Change in the Amount of Revenue18

At Federal Level20

At State Level20

At Local Level21

Fit Between the Budget and Domain Mission21

Improvement in Budgeting and Revenue Estimation22

At State Level23

At Local Level23

Conclusion24

References25

Appendix28



Public Budgeting

Introduction

The paper aims at exploring the concept of public budgeting within the context of the US state, local and agency government level. The paper provides a brief overview of budget and public budgeting in order to highlight the importance of budgeting at a government level. The paper provides a comprehensive analysis of each type of budget by identifying similarities and dissimilarities between each budget. In the light of prior literature and government publications, the paper highlights different sources of revenue for each budget type.

Moreover, the paper makes an attempt to draw an appropriate fit between the budget and each domain mission. In addition to this, the paper emphasizes on various ways to improve budgeting and revenue estimation procedures at each identified level of government. Finally, the paper draws conclusion on the overall understanding of the subject matter.

Discussion

With the advent of information age, reliance of governmental institutions on information has become extensive due to complex and ever changing world of global economies (Lee, 2012). Ever since its existence, the concept of budgeting has displayed a unique relationship of dependence on information. The system of budget attempts to collect precise and efficient information in an attempt to make valid decisions about resource allocation (Lee, 2012).

Public budget or a country's budget is a matter of governmental and societal affair. Every citizen of a country has an equal right to have well understanding the basic composition of his or ...