The Budget Process

The budgets process could help to spread resoursces that increase the skill to get best outcome.

The budget process is a powerful planning tool for government to make important resource decisions. According the Carney and Schoenfeld‘s article on How to read a Budget, an operating budget is a reflection of government’s financial plans. When a budget is

Budget preparation is a process with designated groups and individuals having defined responsibilities. According to Irene S. Rubin “ The public budget process mediates between organizations and individuals who want different things and determines who gets what out of the budget.”1The Government set up an annual budget that includes people perspectives, opinions , accountability and than determine how the budget will get divided based on protected interests. Moreover, Public budgeting determines how government spend money, provide necessary resources , and limit government expenditures to prevent overspending.

Budgeting is perhaps the most essential process involved in the United States government. While this process seems to exist only in the background, it is, in reality, what allows all other processes of government to function as they do. In order to satisfy the most necessities of modern society, changes must be made to each of the three major categories of the budget: the big five, the middle five, and the little guys.

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicate by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans is required to finance those investments (p. 475). Capital budgeting is a central part of the universal

The budget process is the most important aspect of fiscal decision making in Public Administration. Smith and Lynch (2004), argues that “Public budgeting is an activity that many people view from their own perspectives and, thus, they do not comprehend the full complexity of budgeting” (p. 34). Similar to the contextual definition of complexity in budgeting process, a classic example was the State of California’s budget impasse for the year 2010-2011. This essay examines and analyses the concerns that lead to passing a late budget in the State of California. It further goes into details regarding the reasons, resolutions, and consequences faced due to the budget Impasse.

\Governments undertake budgeting as one of the crucial activities with a budget comprising of a plan regarding financial operations that comprise of estimated revenues for financing estimated expenditures within a given period (Florida Finance Officers Association, 2011). Effective budget processes require involvement of all stakeholders so as to enhance in arriving at a budget that is well planned as well as communicated to the respective stakeholders.

The United States Constitution in Article 1, Section 8, Clause 1, designates the "power of the purse" as a function of Congress. It gives Congress the role of the negotiator of the use of public funds, and to make sure the federal budget reflects the values of a majority of Americans. It also includes the power to create and collect taxes and to borrow money when needed. Consequently, Congress creates a new budget every year. This annual congressional budget process is also called the appropriations process. The first step in the process is done by the President of the United States. He starts the federal budget process by sending a budget request to Congress each February for the coming fiscal year, which always begins on October 1st. The

When it comes to the government not many people fully understand what is going on, especially when it comes to the budget and how they decide what to spend things on. Some people just tend to look at a country and see a huge amount of debt and just assume that the country isn’t doing well. When people look at the United States of America they see a country that is a world power. People see a country that overcame many conflicts and is still trying to develop further, as much as possible. A country that has a lot of opportunities. But those opportunities would be in place if there wasn’t a process for the federal government budget. The United States government is filled with many checks and balances to avoid conflicts. Whether it’s though

Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

Historically, incrementalism has characterized public budgeting because at its core, budgeting has evolved: increased and decreased through gradual stages within the realm of the political arena. The need for this one step at a time type of response, found within incremental budgeting, would have likely been caused by the known fact that prior to the 1900’s public welfare programs, federal, states, and even city spending did not exist in the way in which is more than obviously observable in today’s society simply because America did not employ an actual budgetary system. Therefore, as with any unchartered territory, it was approached in stages, with caution, a little at a time in response to the growing needs of the public. Aaron Wildavsky made this case in his book “The politics of the budgetary process,” when he pointed out “budgeting is incremental, not comprehensive. The beginning of wisdom about an agency budget is that it is almost never actively reviewed as a whole every year in the sense of reconsidering the value of all existing programs as compared to all alternatives. Instead, it is based on last year’s budget with special attention given to a narrow range of increases or decreases.” (Wildavsky 1964, p. 15)

Budget formulation and use are tools that guide many decision making strategies in business. The measures that are least effective could create an avalanche of catastrophic events that can negatively impact the decision making strategies. It is in the best interest of the pertinent parties to draft an operating budget based on a collective set of information relating to organizational vision and mission. Ineffective measures can be catastrophic based on the foundation for measures used in creating the budget. Among the many issues organizations face that relates to creating an effective operating budget results from poor

Budgetary control is part of overall organisation control and is concerned primarily with the control of performance. The use of budgetary control in performance management has of late taken on greater importance especially as a more integrative control mechanism for the organisation. Discuss.

Budget and budgetary control practices are undeniably indispensable as organizations routinely go about their business activities and operations. These organizations are constantly on the alert on how actual levels of performance agree with planned or budgeted performance. A budget expresses a plan in monetary terms. It is prepared and approved prior to a particular budgeted period and explicitly may show the income, expenditure and the capital to be employed by organizations in achieving their goals and objectives.