Share
Explore BrainMass

Public Budgeting

Public budgeting is how the government plans their decisions about resource allocation and how to spend their financial resources. It is a plan made up of the expectation for incomes and expenditures for the upcoming fiscal year, which is a twelve-month period. The public budget is simply the difference between the revenue the government receives less its expenditures. Taxes are an example of revenue and fiscal stimulus are an example of expenditures. 

There are multiple tools used in making public budgets and expenditures. Budget transparency is a precondition for pubic participation in budget processes and is the disclosure of public fiscal information. Budget transparency and public participation can dramatically improve corruption and assist public funding. Independent budget analysis is the effort made by civil society organizations to suggest changes to budget. Independent budget analysis can increase public awareness of budget issues and reallocate budget resources. Public expenditure tracking is the tracking of the flow of public resources for the provision of public goods and services.

Public budgeting generally follows the process of preparation, approval, implementation, and evaluation/audit. The preparation for public budgeting involves developing expenditure estimates with available revenues. The next step is that the budget estimates are sent to a board for assessment and may receive input from the public. The municipal departments then implement the budget and the performance of the governmental units is measured throughout the fiscal year.

The major benefits of public budgets includes a greater influence over the public when making decisions about resource allocation, decreased corruption, and a greater sense of trust between the public and the government in the decisions about economic processes. These indicators are evaluated by the end of the year to make changes to or improve the budget process for the next year¹.

 

References:

1. MacManus, Susan A. and Charles S. Bullock, III. "The Form, Structure, and Composition of America's Municipalities in the New Millenium." Washington, DC: International City/County Management Association, 2003

Budget food and beverage sales revenue

Calculate the total budget food sales revenue and beverage sales revenue for the month of August. This August has four Sundays. A dining room has 66 seats, and is open 6 days a week for lunch and dinner (closed on Sundays). Beverage sales revenue normally averages 15% of lunch food sales revenue and 32% of dinner food sales r

The Influence of Interest Groups on Federal Budgeting

What are some of the different political influences and various stakeholder interests that exist in the federal government in terms of budgeting? Why are they important to understand? How can each of those political influences affect public budgeting?

Explaining the National Debt

A) Assume that the gross national debt initially is equal to $3 trillion and the federal goverment then runs a deficit of $300 billion. 1) What is the new level of gross national debt? 2) If 100% of the deficit is financed by the sale of securities to federal agencies, what happens to the amount of debt held by the public? Wha

Public choice is debated.

In view of the attacks on September 11, 2001, fears exist that terrorists could attempt to sabotage a country's food supply. Security related to threats to Canada's food supply is under the jurisdiction of the Canadian Food Inspection Agency (CFIA) Use the Niskanen model of bureaucracy (see figure) to predict how new concerns ov

Government Budget, the public debt, and social security

Congress passes and the President signs into law a bill authorizing the construction of two public recreational facilities, each of which costs $400,000 now and will last for ten years. Each project is financed by government borrowing at an interest rate of 5%. The benefits of the first project are $40,000 per year for the first