Budgetary Incrementalismm

Budgetary Incrementalism

Or line item budgeting

-Line by line list of expenitures to be aid by a given department or agency or office over a specfic year; quite rudimentary; bottom-up as opposed top-down

The Plus Side (+)

-Stability

-No Justifaction

-Fundamentals of programs and polices will continue to exist

-Not difficult nor time-consuming

The Minus Side (-)

-Limited value as a planning tool

-Limited information to senior officials

Performance Budgeting

* Efficiency evaluations are built into the process by determining a relationship between financial inputs and service outputs

-Connects money spent and services rendered

* The Plus Side(+)

-Permits efficiency evaluations

-High performers can be rewarded accordingly

* The Minus Side(-)

* Can be only applied to services that are easily quantifiable

-Not all public services are easily quantifiable

-Results in more frustration than satisfaction

Budgetary Rationalism

The Planning-Programming Budgeting System( PPBS)

Pierre Trudeau in the 1970’s started using this models.

* Predicated on strategic planning, begun by establishing policy and priorities and objectives.

* Goals, Objectives, Tactics

1. Setting specific objectives

2. Using systematic analysis to clarify objectives and assess ways to meet them.

3. Framing budgetary proposals in terms of the achievement of objectives

4. Projecting costs over a number of years

5. Formalizing plans of achievement year by year for each program

6. Developing an information system for each program that

The Planning-Programming Budgeting System (PPBS)

PPBS in Theory

-Founded on the assumption that priorities and objectives could be programmed and that the quantitiative and qualitative worth of programs could be evaluated.

Setting Priorities within an Institution

Setting/ranking of government priorities is easier said than done.

Balancing budget

Growing Economy...