By Gerald Miller, W. Bartley Hildreth, Jack Rabin
Functionality established Budgetingis the following quantity within the ASPA Classics sequence. It covers the main influential, paramount learn articles released on public budgeting and finance. The publication would definitely be of significant curiosity and use to someone fascinated about public budgeting, and someone enrolled in, or educating, a direction in this subject in an MPA application or a doctoral application in public management, public affairs, political technological know-how, or economics/public finance.
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Additional info for Performance-Based Budgeting: An ASPA Classic
Sample text
Since resources are scarce in relation to demands, the basic economic test which must be applied is that the return from every expenditure must be worth its cost in terms of sacrificed alternatives, Budget analysis, tlzerefore, is basically a comparison of the relative nterits of alternative uses of funds. 1952. Toward a theory of budgeting. tewis, Verne B. Public Administration Review 12 (Winter): 43-45. Incremental analysis (that is, analysis of the additional values to he derived from an additional expenditure) is necessary because of the phenomenon of diminishing ~ztitity,Analysis of the increments is necessary and useful only at or near tl-re margin; tl-ris is the point of balance at which an additional expenditure for any purpose would yield the same return, Comparison of relative merits can be made only in terms of relative effectiveness in achieving a c o r n o n objective.
Budgeting has often been the Lever through which reform in government institutions, and particularly management practices, has sprung, Significant questions exist, however, about the preseiit performancr: movement in government management and the place budgeting holds in its unfolding. Is resulrs- or perhrmance-oriented management-the new public managemerit as Thompson called it-a reform that ignores budgeting? Mow friendly is budgeting as practiced with a performance or productivity emphasis?
The ultimate goal is to devise units of work and to determine unit costs wllerever possible so that budget requests can be stated in this fashion: "It costs X dollars to perform each unit of this type of work, If you want us to perform 100 units, the cost will be 100 times X doltars. " This approach is useful for budgeting in many siluations. Ir supplies some of the numbers needed for the econr,n~iccalculation discussed in Part I above. Precise, quantitative measures, if pertinent and fcasibie, are better tl-ran vague generalities.
