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Article: Can we budge it? If budgeting is flawed in the private sector, it's hopeless in the public sector, writes Merrill Cassell. But there is an approach that, if adopted, could negate many of the problems that beset the current process and destroy value.(Beyond Budgeting)
- Article from:
- Financial Management (UK)
- Article date:
- November 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The public sector has used many forms of budgeting over the years. Several have had their day, including lump-sum, line-item and zero-base budgeting. Today, most budgets are prepared by object of expenditure and function, and several other analyses are used to substantiate the object-of expenditure and functional breakdown.
But public budgeting remains a big public burden despite several reforms. A number of deficiencies exist in the system, the most notable of which are susceptibility to political influence, duels between planning and budgeting, long preparation times and year-end spending sprees.
Budget offices are prone to questioning any unspent ...