Explain the various functions t public budget
Answers
Answer:
Budget also serves as an instrument of financial control by legislative over executive. It also serves as instrument of accountability and financial control. Further, it is a management tool for achieving efficiency, productivity, improvements and for determining the degree to which policy goals have been accomplished
Answer:
Functions and Principles - The basic characteristics of government budgeting are as follows:
A budget is a financial plan for rationing scarce resources amongst various demands for expenditure. It is a comprehensive plan of action designed to achieve the policy objectives set by the government for the coming year. A budget is a plan and a budget document is a reflection of what the government expects to do in future
Budget: Over the last few decades, however, budgets have become extremely complex and pervasive. Thus, the concerns of budget makers are not just financial, that is, producing a balance between expenditure and revenues; rather these are economic, political, social and administrative in nature
budget 1
FUNCTIONS OF BUDGET Accountability In the early phase, legislative control and accountability were the primary functions of the government budget. This arose from the legislature's desire to control (impose, amend and approve) tax proposals and spending. The executive is accountable to the legislature for spending-within limits approved by the latter, under several heads of expenditure, and only for approved purposes. Management Budgeting is an executive or managerial function. As an effective tool of management, budgeting involves planning, coordination, control, evaluation, reporting, and review. Managerial functions of the budget have become important aids to management
budget 2
Various budgetary systems like performance budgeting and zero-based budgeting are specifically management-oriented systems. BUDGETARY METHODS AND TECHNIQUES Zero-Based Budgeting (ZBB)
ZBB is an operating, planning and budgeting process which requires each manager to justify her/his entire budget request in detail from scratch (hence zero-base) and shifts the burden of proof to each manager to justify why he should spend at all
The method, developed by Peter Phyrr during the early 1970s
Requires thorough knowledge of the organization, a lot of time, effort and training.
Having much in common with PPBS and opposite to historical budgeting,
It emphasizes current activities and the necessity to justify each part of the program every year.
It assumes a budget of ‘zero’ for each program until one convinces the appropriating authority that the program is worthwhile and deserving support at a specified level.
It does not allow for incremental growth in the budget.
This approach requires that all activities be identified and developed as “decision packages” and systematic evaluation and ranking of these “decision packages” preferably using a computer.
It does not take into account what happened in the past but places emphasis on the current activities.
Every program and activity is spelled out in detail and the financial requirements are worked out without any reference to the past. In other words, request for financial support has to be established afresh every year.
No activity, in fact, could continue simply because that activity was undertaken in the previous year.