Question

With regard to the issue of budget preparation, there are primarily two types of approach: rational-comprehensive approach (i.e., Zero based budgeting) and muddling-through approach (i.e., incrementalism). Based on the assigned readings, please (a) explain the meaning of each approach, (b) compare the pros and cons of two approaches, and (c) recommend an appropriate approach for NJ state government to prepare the budget for FY 2021 under current social-political context. (5 points)

Answer 1

a). Meaning of both the approaches:

Rational-Comprehensive approach: This approach is based upon the different perspectives and ideas. Initially all the corresponding solutions are analysed. The pros and cons for each approach are considered and discussed upon and after achieving a common ground a final approach is decided to work upon.

Muddling-Through Approach: In this approach change is brought about in phases and small increments as the name suggests. There is no final path that is decided in the beginning, this approach is adaptive and while the approach is being followed in phases, the next phase depends on how the previous phase is functioning.

Thus, a lot of small steps contribute towards completion of the whole staircase.

b.) Pros and cons:

* In the rational approach everyone has their own ideas, thus it is more objective, whereas in incrementalism, it is more subjective and thus is more restricted towards open ideas.

* The rational approach is more time consuming, whereas incrementalism is less time consuming because of its adaptive nature.

*A roadblock can cause the whole project to fail in a rational approach, whereas because incrementalism happens in phases, thus one error cannot block the whole process.

c.) As per my opinion in the given scenario after suffering from COVID-19, the state NY should go for an incremental approach as it will help them move forward in phases, not being dependent on the whole olan at once, when the things are so uncertain because of a pandemic.