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Budgetary Incrementalismm Essay

547 words - 3 pages

Budgetary Incrementalism

Or line item budgeting
-Line by line list of expenitures to be aid by a given department or agency or office over a specfic year; quite rudimentary; bottom-up as opposed top-down

The Plus Side (+)

-No Justifaction
-Fundamentals of programs and polices will continue to exist
-Not difficult nor time-consuming

The Minus Side (-)

-Limited value as a planning tool
-Limited information to senior officials

Performance Budgeting

* Efficiency evaluations are built into the process by determining a relationship between financial inputs and service outputs
-Connects money spent and services rendered
* The Plus Side(+)
-Permits efficiency evaluations
-High performers can be rewarded accordingly
* The Minus Side(-)
* Can be only applied to services that are easily quantifiable
-Not all public services are easily quantifiable
-Results in more frustration than ...view middle of the document...

Developing an information system for each program that

The Planning-Programming Budgeting System (PPBS)

PPBS in Theory

-Founded on the assumption that priorities and objectives could be programmed and that the quantitiative and qualitative worth of programs could be evaluated.

Setting Priorities within an Institution

Setting/ranking of government priorities is easier said than done.

Balancing budget
Growing Economy
Fixing the Healthcare System
Eliminating the poverty


Measuring and Analyzing Objectives
* Any program has many objectives, each neccesiating a different form of evaluation

Forecasting Political and Economic Conditions
* Economic slowdown and political conditions can change rapidly.

Concentrated Decision Making Power
-Shifted decision-making power into the hands of senior policy analysts and managers within departments and central agencies and out of the hands of middle managers
-The Privy Council Office, Treasury Board Secretariat and Finance came to play major roles

PEMS( The Expenditure Management System)

Was designed as a general system of financial management, linking together in a systematic method the demands of planning, programming, budgeting, and.
* Financial Mgmt
The Mechanics of the Systems
-Presents official with cyclical annual budgeting process
-Departmental business plans en vogue
When The Federal Government tables its budget they do it before the Fiscal year begins.
Budget-Making Tactics
Spender Tactics-
1. Inflate the budget( build in fat)
2. Spend now, Save later( new programs= future improvements)
3. Mobilize Interest Groups
4. Take Advantage of Crisis ( can become catalysts for new programs)
5. Attack Popular Programs ( one of the most desirable ones)
6. Make an End Run( treat it as a fait accompli) Sensitive thing to make an end run in budgeting. To go around the minister of finance is ridiculous. People dislike end runs.
Budget-Making Tactics
Guardian Tactics
1. Set the rules (establish systems that militate against end runs)
-Demand documentation (studies and analyses)
-Confer and investigate( see contrary opinions)
-Know thy opponent (recruit former departmental employees)
-Just say NO (nuff said!)

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