Gov't Budgeting
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.
GOVERNMENT BUDGET
In general, a government budget is the financial plan of a government for a given period, usually for a fiscal year, which shows what its resources are, and how they will be generated and used over the fiscal period. The budget is the government's key instrument for promoting its socio-economic objectives.
Budgeting approaches or modes and techniques used in the Philippine government are characterized into three major orientations: * Control-orientation in budgeting is the process of enforcing or applying limitations and conditions that are set in the budget * Management-oriented budgeting involves the use of budgetary authority at both agency levels to ensure the efficient use of resources * Planning-orientation in budgeting is the process of determining public objectives and the evaluation of alternative programs.
FOUR (4) BUDGETING METHODS
1. Line-Item Budgeting
The line-item budgeting approach emphasizes listing of objects for itemized expenditure such as personnel, supplies, and equipment without much regard for the purpose of programs or projects for which such items are proposed. It also controls expenditures at the department or agency level giving emphasis on the accounting aspect of the government operations in terms of items bought or paid.
2. Performance Budgeting
In performance budgeting, objects of expenditures are grouped into categories related to the specific services or products an institution produces, as against objects it purchases, and the development of product cost measurements of activities or services so that
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.
GOVERNMENT BUDGET
In general, a government budget is the financial plan of a government for a given period, usually for a fiscal year, which shows what its resources are, and how they will be generated and used over the fiscal period. The budget is the government's key instrument for promoting its socio-economic objectives.
Budgeting approaches or modes and techniques used in the Philippine government are characterized into three major orientations: * Control-orientation in budgeting is the process of enforcing or applying limitations and conditions that are set in the budget * Management-oriented budgeting involves the use of budgetary authority at both agency levels to ensure the efficient use of resources * Planning-orientation in budgeting is the process of determining public objectives and the evaluation of alternative programs.
FOUR (4) BUDGETING METHODS
1. Line-Item Budgeting
The line-item budgeting approach emphasizes listing of objects for itemized expenditure such as personnel, supplies, and equipment without much regard for the purpose of programs or projects for which such items are proposed. It also controls expenditures at the department or agency level giving emphasis on the accounting aspect of the government operations in terms of items bought or paid.
2. Performance Budgeting
In performance budgeting, objects of expenditures are grouped into categories related to the specific services or products an institution produces, as against objects it purchases, and the development of product cost measurements of activities or services so that