Public Budgeting Essay Example | Topics and Well Written Essays - 500 words - 2

Public Budgeting - Essay Example Both the legislature and executive are significantly involved in the system practice. Performance budgeting system is implemented to successfully to enforce constant requirements on agencies. The Agencies must explain in event of significant failure ranging from 10 percent or more to adhere to set performance targets (Clynch 2006). The performance based system of budgeting is very effective in a real practical scenario. Especially in public administration where for every input- tax payer’s money- they expect tangible results. Performance based budgeting plays a massive role in influencing operations effectively and efficiently. The system in itself is inherent with small economic departmental unit accountability. The single unit performance assessment style results in differentiated system. This differentiation is vital since public agencies always undergo through many procedures before finalizing an actual budget execution phase. Post-execution analyses time is also shortened through the performance based budgeting system (Clynch 2006). The whole practice involves the co-collaboration of different departmental bodies within the government. This collaboration is essential for more than just budget preparation procedure, negotiation procedures and approval processes. The coordinative collaboration of departments is important in approval of values to be allocated in order to attain defined goals after the finalization of the budgeting (Kelly 2003). The system`s advantage revolves around its rational methodology of budgeting. Whenever an organization defines the amount to allocate to a department or activity, it considers the costs against benefits for each funding level. If there is no justification for the spending the amount is reduced. The system links objectives to outcomes. A body that practices performance budgeting uses performance management (Clynch 2006). When management