Question

Discuss the public budget decision making process from the preparation phase and its products to final adoption. (1) What information is contained in the budget? (2) What are the respective roles of line agencies, the central budget office, the chief executive and the legislative body?

Answer 1

A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows

1)It including tracking spending, adjusting planned expenses and savings goals and projecting year-end numbers. In addition to basic income and expenses, your household budget should include formulas that adjust your savings and spending levels to help you adequately feather your nest.

There are three parts to the production budget: direct materials purchases budget, direct labor budget, and overhead budget. Each is required to produce the production budget.

2)Part of central exercise of legislative authority is the establishment of an annual budget for the government. To this end, Congress levies taxes and tariffs to provide funding for essential government services.

Line agency performs the primary or main function for which an organization came into

existence. Police Department, for example is responsible for maintenance of law and order. Right

from Director General of Police (DGP) to beat constable are involved to perform this function.

However to perform this duty it requires weapons, sticks, uniforms, transport, Police Stations,

training, intelligence, stationary. These services are provided by staff agencies like Police

training college, state intelligence bureau, Police recruitment boards etc. Line agency performs

the primary function which is an end in itself while the staff agencies carry out secondary

functions which are means. to achievement of end.

Line agencies are responsible to execute the policies and programmes sanctioned by

legislature. They issues directions to field agencies and supervise the implementation of different

programs, Projects, schemes.