Government Budgeting

Topics: Fiscal year, Federal government of the United States, Budget Pages: 5 (1295 words) Published: February 1, 2012
The term “budget” may be traced back to the Latin word “bulga”, which literally means bag or purse. Some scholars however seem to favor its deviations from the middle English “bouget”, meaning bag or wallet. It applied to the leather bag carried by the Chancellor of the Exchequer to parliament and contained the documents explaining the needs and resources of the country. As government changed and developed, the “budget” took on a much broader meaning. * GOVERNMENT BUDGETING

Government budgeting is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country. It also entails the management of government expenditures in such a way that will create the most economic impact from the production and delivery of goods and services while supporting a healthy fiscal position. * IMPORTANT FEATURES OF GOV'T BUDGET

As authorized by prominent authors of public finance, especially professor Buck, the budget, as a financial and work plan, has three features namely: 1. Equilibrium
2. Comprehensiveness
3. Annuality
Administrative budget
* It includes the collection and disposition of all funds which belong exclusively to the government. It omits the income and outgo of the so called trust and similar funds administered by the government. Consolidated Cash Budget

* It includes everything shown in the administrative budget. All cash transactions between the government and the public are shown. National Economic Budget
* It is the type of budget which reflects the impact of the government’s taxing and spending activities on the economy. It tabulates the main economic transaction in the following major sectors of the economy: consumers, business, international and governmental. Capital Budget-

* It provides a vehicle for financial planning over a period of years. It separates financing for capital outlays from current operating expenses. It contributes to financial soundness since there is assurance that funds for needed improvement will be available. Program Budget

* It is a means by which a program officials are constantly reminded of the objectives for which they are responsible and by which they can determine progress in terms of money, time, man hours and materials towards these objectives. This budget provides data not found in traditional budgets. * MAJOR UNITS OF DBM

A.) Budget operations service
IT COMPRISES SIX OPERATIONAL DIVISIONS AND THREE STAFF UNITS. * The six budget operation divisions instruct advice and assist bureaus and offices in budget preparation and expenditure control. * The budget planning staff studies improvements in The Basic budget System; develop[ methods and techniques for adequate budget review; prepares instructioons on the submession of agency budget estimates; designs the budget document; and assists in the training of budget examiners. * The Legislative service reviews the economic trends and relationships affecting and effected by government income and expenditures; the impact of government fiscal policies on the economic growth of the country and the achievement of a judicial balance between taxation and borrowings. B.) Management service

* Conducts continuing studies on effective organization and administration; recommends standards and procedures for adoption by agencies in their management practices for use in training programs and provides technical advice and assistance in the conduct of training programs. C.) Wage and position classification office

* Puts into effect the position classification and pay plans provided by Reorganization Plan and modifies and revises these plans as it may deem necessary. D.) National accounting service
* Keeps the control book s of accounts of the National Government. * CONTENTS OF THE BUDGET
The statement of appropriation...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Budgeting Process Essay
  • Local Government Accounting System Essay
  • Essay on Government Interventaion in Market
  • Government Essay
  • What It Is About Government and Not-for-Profit Entities That Mean They Are Unable to Meaningfully Apply the Same Set of Standards as Do...
  • Essay on Government
  • Government Essay
  • Capital Budgeting Research Paper

Become a StudyMode Member

Sign Up - It's Free