The On The Public Budget Cycle Essay
The public budget cycle is applicable to organizations that operate based on a budget. There are four phases related to a budget cycle and each step is valuable. For example, with preparation, approval, execution, and evaluation of each step involved becomes a living document towards better understanding and helping to achieve the organization goals. The preparing of a budget is the first step, approving of the budget is the second step, executing the budget is the third step and lastly, the evaluation of the budget.
Preparing of the budget is a process that generates the budget. It must be done correctly in order to identify what is needed and what are the new initiatives that should be implemented. Leadership can also provide insight or guidance on what departments can expect. Upon completion of the departments spending decision, the request is submitted to decision makers on what should be included or excluded on the final document. Approving the budget is one of the underlying principles in the business. For example, budgets are not based on a “yes or no” basis but solely up to a further debate. Thus, instead of the approval process; the organization can take the opportunity to take another view towards the organizations and how funds are spent.
In executing a budget it has to be passed but is not considered complete. Chief executives for the organization, if chosen, can impound funds to prevent any wasteful spending. However,…