Alternatives To Traditional Budgeting In Government
Source: Associated Content
Budgets, structures constructed to track and control the expenditure of funds, were first introduced into government finance as a means to prevent theft. This first important use of public budgeting engendered the development of budgets as spending control devices. However, as government evolved, there arose a need for analysis and planning of public finances for use in decision making involving government activities and programs. Traditional public budgeting, with its tight spending controls, is ill equipped to serve as a resource allocation tool in modern times and actually creates problems such as diminished capacity to respond to citizen-clients and increased cost of service.