What Is The Difference Between The Doe Budgeting Pros And Cons

Performance-based budgeting measures, reports, and factors the outcome of an agency or program into future budget allocations. Moreover, this approach to appropriations creates incentives for an agency or program to produce measurable results in order to justify spending. This type of budgeting is defined as an “allocation of funds to achieve programmatic goals and objectives as well as some indication or measurement of work, efficiency, and/or effectiveness” (Young 12). Performance-based budgeting originated in the 1940’s after World War II when Hoover’s administration faced debt that surpassed the nation’s gross domestic product. The Hoover Commission attempted to align spending decisions with expected performance by recommending a shift from the traditional emphasis of government inputs to outputs (GAO 1997). Performance-based budgeting was designed to reform budgeting practices to focus on the measurement and reporting of outcomes.

Public Finance is the role of government in the economy. Transparency and accountability in government financial management is crucial. The reading, “Understanding New York City’s Budget” references that due to government spending of taxpayer money to operate various services, several checks and balances such as Audits, City Council Oversight, Mayor’s Management Report (MMR), and Program Evaluation were put in place for accountability. The adherence to policy, procedures, rules, regulations and laws are important when compliance and integrity is the goal.

By adding the auditing process to line-item budgeting, government management focuses on expenditures, thus creating a type of accountability that confronts corruption, helps discourage public employees deviating from strict instructions, and enhances tighter control over the employees’ behavior. For these reasons, most governments utilize some form of line-item budgeting at some level within their organization” (Smith & Lynch, 2004).

\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 federal budget is designed every year by undergoing an arduous process to be ratified as a law. Under the regulations of the Budget and Accounting Act of 1921, the president first sends a federal budget request to the United States Congress reflecting the needs of federal agencies to work properly in the coming year. A debate in Congress ensues in response to the President’s budget request and eventually a budget resolution is put together by committees from both parties in the House of Representatives in the Senate which is then turned into actual spending bills called “appropriations bills”. A unique conference committee comes together to settle appropriations disputes between the House of Representatives and the Senate, potentially leading to the president’s signing of a veto of the proposed budget into law, which the president (by law) is

Some say you have to spend a dollar to make a dollar, when it’s our government its called deficit spending. Deficit spending is the result in the government spending more during a period of time then they make back in revenue causing a debt. This type of spending is normally during an economic recession and is justified in order to give the economy a jump-start in reviving. The validation of this is to stop the economy from losing more money as individuals become unemployed resulting in lose of taxable revenue. This drastic strategy has its advantages and disadvantages for both long term and short-term economic effects. “There are those that argue that government borrowing and spending would create jobs and induce economic growth which would lead us out of the recession. Conservative economists on the other hand argue that government spending causes high interest rates which in turn curbs investment and economic growth.” (Hassan and Nassar, 2015) While it may help create more jobs, wages and programs it can also cause taxes and interest rates to rise. If a consumer cant afford the inflated economy then the new job starts to seem obsolete.

While very little research has been undertaken into the value and function of government communication (Simmons and Small, 2012; Pandey and Garnett, 2006), at the local government level it is accepted that communication supports the “mandatory functions that support accountability and participation in democracy (Lee, 2012 cited in Simmons and Small, 2012 p.9). As such, it is through the information outputs of government, namely the transparent disclosure of public interest, official information, that they meet their democratic obligations. However, the mere handling of official information gives the information holder inherent power and it is where the conflict between openness and secrecy arise. For instance, is government-held official information transmitted to the public in a timely and transparent manner? Or, is this information withheld in whole or in part because it might embarrass government or lead to questions over the proper

Budget cuts are not a one-time harm, they will continue to hurt students as they pursue higher education. Funding is not just an issue among public schooling at the K-12 level, it is also an issue many universities are facing. States are no longer giving colleges and universities the funding they once had. Kathryn McNutt asserts that the severe funding cuts are only beginning at the K-12 level and will expand further into the collegiate level. McNutt states, “Sanders said state funding provides less than 8 percent of the OU Health Sciences Center’s $1 billion budget and less than 6 percent of the College of Medicine’s budget.” Due to the lack of state funding colleges are looking for other types of sponsorship and if none can be found they may have to cut some of their programs. Colleges are at risk of losing popular programs at their schools which would cause a decrease within their enrollment. Students are also at risk when faced with the possible loss of programs. Students enrolled in a program that gets cut have no compensation, this would put students as well as the college in a very bad position both financially and legally.

When a government’s spending exceeds its revenues causing or deepening a deficit it is called deficit spending. Deficit spending is only one of numerous tools used to help manage the economy. Deficit spending is presumed to stimulate consumer demand by helping the consumer to obtain more money to spend, in turn, the demand of product will rise. There are advantages and disadvantages to deficit spending that we will discuss further below.

A government agency with whom I am very familiar with is the Department of Veterans Affairs (VA). I was a Program Analyst with the office of Quality, Performance, and Oversight (QPO). This particular office was responsible for all Human Capital endeavors that involved special projects and recruiting. The VA is no different than any other appropriated agency within the federal government, they are funded by tax payers’ money and have legislative policies to comply with. The different phases of the VA’s budget cycle are described by the Department of the Treasury as “life cycles” and include the following; Executive budget formulation and transmittal, congressional action, budget execution and control, audit and review. (VA.gov/finance).

Recently, President Donald Trump released the new budget blueprint, which was largely avoided among the Republicans, and the Democrats did not decide to consider it, at all. Qorvis MSL's Stan Collender answered questions about the budget, as well. He said that the budget should not be taken seriously, and it was a Trump campaign document disguising itself as the president campaign. Additionally, he stated, “Big tax cuts for the wealthy combined with deep spending cuts for the poor and the middle class are the perfect way to describe this budget.” Collender said it was Trump’s way of saying “Let them eat cake.” He believes the budget will be largely ignored by the House Republicans, but will support the increase in the Pentagon budget. “...Congress

To exercise transparency in public administration is to certify peoples the accessibility of data which is thought public. This has to be a business objective, and is to be taken into explanation when showing all public industries irrespective of one’s job title. If the objective of a business is to help the citizens to the greatest of their capability, then failing or avoiding achieving transparency would affect major harm to the connection between them and the citizen they are aiming to help.

Instances where budget projections differ from actual revenue collections and spending are referred to as variances. Budget variances can have a positive or negative mathematical sign and are attributable to a number of factors. However, it is important to ensure that such variances are minimal because they lead to questions regarding the quality and reliability of the budget making process. Knowing the sources of variances improves the accuracy of projections in future financial periods (Parkinson, 2009).

All organizations strive to streamline operations, which in turn should lead to saving money. Fighting the wasting of resources should be a top priority for any government entity and particularly for supervisors, managers, and executives. In the public sector this is particularly true because the citizens in effect supply the resources wasted. The public trust should not be abused by careless or needless spending. However, because of the bureaucratic nature of any government agency, some waste cannot readily be avoided. The laws and regulations that have been duly enacted to secure justified expenditures in and of themselves can cause waste.

Deficit spending is when purchases exceed income. It is usually attributed to government spending within an economy. Although it can happen to both individual and business, when government spends more and not able to balance the budget, we say it is deficit spending. Deficit spending is created each fiscal year by congress and government because the spending by government causes the growth of the economy. For example, in the United State deficit spending is mainly caused by social, security, and medical cost. Government spends most of its revenue in each fiscal year into this payment. According to Kimberly Amadeo(2017) he said “ most people don’t realize that wars create more deficit spending than the create recession. The war in Afghanistan cost $28.7 billion in 2001.The war in Iraq for deployed military costs $72.5 billion by 2003. In 2008, the total cost grew to $186.6 billion.