What are the differences in the budget cycle in good economic times versus bad economic times? What economic changes do you think influence the transition? How do these differences in the cycle affect the preparation, execution, and evaluation of the budget?© BrainMass Inc. brainmass.com October 10, 2019, 5:13 am ad1c9bdddf
The main point of concern in the budget cycle, as related to the economy, is the timing of the budget in relation to the activities in the economy. When economic times are healthy and thriving, and there are more inputs into the economy than outflows, the budget cycle considerations will be much less restrained than in bad economic times. When we face bad economic times, we have to consider that the public will already be tense due to the current economic conditions. When bad economic times occur, inflation is present, credit is harder to obtain, and agencies presenting budgets need to watch their timing in respect to the contents of the budget. This wouldn't be the most feasible time to release a budget where a large amount of money has been allocated to projects that are not immediately critical, particularly considering ...