Question

What are successful approaches to forecasting and creating a needed public sector budget? How much should we train personnel in budget forecasting and creation?

Answer 1

The successful approaches of forecasting and creating public sector budget are as follows:

• A proper planning system to make the government easy of understanding and meet the realistic, affordable and reliable of what is capable of reaching its target set goals the given time.
• The planning should address the sectoral priorities with a smooth strategic plan
• The framework of the approach should be monitored on a regular basis by the top management of the budget team
• The overview of the resources should be available along with the utilisation accounted for each transaction
• The proper analysis of past budgets and ratio analysis and its implementation hurdles should also be considered and take controls to improve in upcoming budgets
• The interlink of the macro and micro factors with revenue forecast along with a tight procedural analysis
• The policies should be accessible and clearly articulated with respect to each sector and its special importance with applicable and appropriate reasons.
• Each sector ministries and other corporate monitoring bodies are to consulted before the budget finalization.

The personnel training is necessary for the budget forecast

• Each team and person in detail should know the clear task and the final goal and motive of the preparing budget
• They should have a knowledge about the micro and macro factors affecting each sector and those level of impact on other sectors also
• They must be a highly experienced and also analysis the past budget and its outcomes and the level of reaching the expectations
• They should be a well defined in policies and explanation of sequences and logics