Fundamentals of Public Budgeting and Finance by Aman Khan

Author:Aman Khan
Language: eng
Format: epub, pdf
ISBN: 9783030192266
Publisher: Springer International Publishing

Preparing the Budget

Preparing a performance budget is much more involved than either a line-item or a program budget because of the need to develop meaningful performance measures that will provide the necessary data for budget development. The following steps are typically used in developing a performance budget : (1) select an agency or department for which the budget will be prepared; (2) select a program or program of activities for the agency; (3) determine the workload, as well as output units for each program; (4) determine the input units, in particular the amount of inputs (resources) to be used to produce the output quantity; (5) calculate the cost per unit of output; and (6) multiply the cost per unit of output by the total amount of output to determine the total cost of the program.

While the steps indicated above are simple and easy to follow, they can be extremely time consuming if they are to be developed for every single program or program activities. Also, agencies may spend an enormous number of hours trying to develop measures for activities that may not add much value to the decision process. To avoid the problem, one could identify the key strategic activities that are most important to the government, the community, and the larger population it serves. Table 6.3 presents a simple performance budget for the garbage collection example.Table 6.3A simple performance budget

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.