Public Budgeting and Finance

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Who are the key actors involved in the budgeting process?

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Chief executive, budget director, legislator/council member, agency director, auditors/evaluators, interest groups, and the general public.

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What is the role of the Ministry of Finance in public budgeting?

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Establishes fiscal policy and manages budget preparation.

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How does the budgeting process differ in presidential and parliamentary systems?

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In presidential systems, the executive prepares the budget but the legislature has final approval; in parliamentary systems, the executive and legislature are closely linked, leading to faster budget approval.

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What is the difference between discretionary and mandatory spending?

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Discretionary spending is flexible and requires annual approval, while mandatory spending is required by law and does not need annual approval.

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What is Cost-Benefit Analysis (CBA) and its purpose in budgeting?

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CBA compares the costs and benefits of a program to determine the most cost-effective option.

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What are the key features of traditional budget formats?

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Focus on economic classification and fiscal responsibility.

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What is the main advantage of performance-based budgeting?

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It allows for monitoring the outcomes of spending and correlates spending with services provided.

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What is incremental budgeting?

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An approach that adjusts the previous year's budget by adding or subtracting funds.

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What is the Zero-Based Budgeting (ZBB) system?

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A budgeting approach that requires justifying all expenses from scratch, without reference to previous budgets.

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What are the characteristics of program budgets?

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Organizes expenditures according to outputs/outcomes and focuses on achieving public objectives.