Main Types of Budgets Discussion Essay
Instructions: **Please write a 100-word response to the below.
A traditional budget is line-item purchases organized by administrative department. This budget devotes a lot of energy to figuring out what to buy and not enough energy on the results to achieve.
The main focus and purpose of this budget is that, it embodies several impediments to efficient and effective public management and planning like the administrative department basis for budget requests and appropriation, the short period concept for costs in budget considerations, the focus on agency inputs rather than services provided, outputs, or outcomes and weak tools for comparing program costs with the value of the program.
Traditional budgets aren’t well-organized for making decisions because it does not present the information correctly.
A program budget doesn’t focus on what the governments buy or the task that agency performs but rather on a specific critical question, “what are agencies doing that is valued by the public?” This budget format organizes proposed expenditure according to output/outcome or contribution to public objectives. The main focus and purpose of this budget is defining the goals of the government and classifying the organizational expenditure contributing to the achievement of each goal.
A performance budget presents the cost of performing measurable accomplishments units during the budget year, so the budget process has the dual role of providing funds and establishing performance objectives. The main focus and purpose of this budget is that it emphasizes agency activity performance and not the purchase of the resources.
All of these types of budgets have many similarities like resource allocation and that the different spending of each improves the budget in different way