1. How are public budgets prepared?
Preparing public budgets include a five step process known as "The five clusters of decision making." The first in this process is titled the revenue cluster. "Revenue decisions includes technical estimates of how much income will be available for the following year, assuming no change in the tax structures, and policy decisions about changes in the level or type of taxation." Second, the budget process. The budget process includes numerous questions primarily regarding power, and "how to make budget decisions." Under the budget process, the following questions are asked, "Who should participate in the budget liberations? Should the agency heads have power independent of the central budget office? How influential should interest groups be? How …show more content…
How should work be divided, and when should particular decisions be made?" Third is the expenditure cluster, which "involves some technical estimates of likely expenditures, such as for grants that are dependent on formulas and benefit programs whose cost depend on the level of unemployment." This cluster also includes(entails) the following "Which programs will be funded at what level, who will benefit from public programs and who will not, where and how will cuts be made, and whose interests will be protected." Fourth the balance cluster. "The balance cluster concerns the basic budgetary question whether the budget has to be balanced each year with each year ' revenues, or whether borrowing is allowed to balance the budget, and if so, how much, for how long, and for what purposes. Finally, the fifth cluster, known as budget implementation. Budget implementation asks questions such as "How close should actual expenditures be to the ones planned in the budget? How can one justify variation from the budget plan? Can the budget be made after
Preparing public budgets include a five step process known as "The five clusters of decision making." The first in this process is titled the revenue cluster. "Revenue decisions includes technical estimates of how much income will be available for the following year, assuming no change in the tax structures, and policy decisions about changes in the level or type of taxation." Second, the budget process. The budget process includes numerous questions primarily regarding power, and "how to make budget decisions." Under the budget process, the following questions are asked, "Who should participate in the budget liberations? Should the agency heads have power independent of the central budget office? How influential should interest groups be? How …show more content…
How should work be divided, and when should particular decisions be made?" Third is the expenditure cluster, which "involves some technical estimates of likely expenditures, such as for grants that are dependent on formulas and benefit programs whose cost depend on the level of unemployment." This cluster also includes(entails) the following "Which programs will be funded at what level, who will benefit from public programs and who will not, where and how will cuts be made, and whose interests will be protected." Fourth the balance cluster. "The balance cluster concerns the basic budgetary question whether the budget has to be balanced each year with each year ' revenues, or whether borrowing is allowed to balance the budget, and if so, how much, for how long, and for what purposes. Finally, the fifth cluster, known as budget implementation. Budget implementation asks questions such as "How close should actual expenditures be to the ones planned in the budget? How can one justify variation from the budget plan? Can the budget be made after