Question

How can performance information can be utilized in each of the four stages of the federal budget process?

Answer 1

The four stages of budget process include :

A) Budget formulation

B) Budget presentation and the Congressional Process

C) Budget Execution

D) Audit and Evaluation

Now let us see the utilization of performance information in these stages.

A) while forming budget, it should be kept in mind that in which area how much money is being allocated. And the allocation should be done such that the desired results can be obtained. This helps in measuring the performance by ensuring that desired results are fulfilled or not.

B) Budget presentation : The formed budget is then presented in font of all members involved in the budget process. People will talk and dicuss the budget. All will put their own views on this. This way the budget can be judged and analysed whether it is good to follow or not. Hence we saw how it urges to performence informa. We can know if the budget would able to meet the desired results or not.

C) Budget Execution : Now the budget is ready to be executedh the funds are properly located where there is need to do so. There is also a control system for funds that helps in preventing obligations and various expenses and they also fix Accountibility related to obligations and expenses.

In its ongoing process, it is evaluated that the budget is going the way it was expected to go or not. And this is the stage where new budgets starts to be getting planned reffering to the current going budget.

D) Audit and Evaluation : Now here, the budget is being evaluated by the results that came from thus budget. A analyzation is being 0erformed, whether all targets set were made on not. What was the actual performance OK the this budget is evaluated that would create base for future to take important decisions.

Hence, we saw how performance information is used in these phases to make a successful budget for the fiscal year.