Module 7

Question 1

The stages in the evolution of the United States’ federal government budget are
characterized, according to

Answer 1

Alen Schick

Question 2

Three major orientations:

Answer 2

Control Orientation
Management Orientation
Planning Orientation

Question 3

It is the process of enforcing limitations and conditions set
in the budget and in appropriations, and of securing compliance with the
spending restrictions imposed by central authorities.

Answer 3

Control Orientation

Question 4

It involves the use of budgetary authority at both
agency and central levels to ensure the efficient use of staff and other budgeting,
the focus is on agency activities.

Answer 4

Management Orientation

Question 5

It is the process of determining public objectives and the
evaluation of alternative programs. To use the budget for planning, central
authorities must have information concerning the purposes and effectiveness of
programs. They must also be informed of multi-year spending plans and of the
linkage between planning, spending, and public benefits.

Answer 5

Planning Orientation

Question 6

APPROACHES IN BUDGETING

Answer 6

-Line-Item Budgeting
-Performance Budgeting
-Planning, Programming and Budgeting System
-Zero-based Budgeting

Question 7

“Item of Expenditure Approach”
* Manifestation of process budgetary, “incremental fragmented, non-programmatic
and sequential.
* During its Legislation or authorization phase, the legislature wielded so much
influence on agencies of their choice.
* The lawmakers were able to pinpoint “objects of future choice” especially this
referring to new positions.

Answer 7

Line-Item Budgeting

Question 8

• “Activity” or “functional” budgeting
• Objects of expenditures are deemed as significant factors in relation to what they
  used for and not in relation to their specific character.
• The Budget, accounting and auditing modernization project was launched in July
  1954 in collaboration with US management; introduced as part of package
  reforms.
• Budgetary improvements represented an attempt to initiate requisite changes in
  an area relatively neglected in the past.
• Reforms to help government cope with social, economic, and political problems.

Answer 8

Performance Budgeting

Question 9

• Answer to the need for an economic allocation of resources and the undertaking of
  government policy, program analysis, and cost utility analysis to improve the policy
  decision process of government.
• The scheme requires agency managers to identify program objectives, develop
  measuring program output, calculate total program costs over the long run, prepare
  detailed multi-year program and financial plans, and analyze the costs and benefits
  of alternative program designs.
• The system provides a strong linkage between planning and budgeting.

Answer 9

Planning, Programming and Budgeting System