Two questions related to Public Budget and Finance Essay

Two questions related to Public Budget and Finance - Essay Example Public budgeting is targeted towards the wellness of citizens. A little wrong prioritization, misallocation of resources, and financial negligence in this process can pose certain challenges for the government regarding implementation of public wellness programs and other public policies. Public budgeting holds a critical place in decision making processes because it is directly associated with the well-being of citizens. It is one of the main responsibilities of any government to allocate resources among competing public sector needs in such a way that none of the sectors faces shortage of funds in any particular stage. Public budgeting includes analysis of the needs of all public sectors and allocation of financial resources in accordance with the analysis report. It is obvious that if one program is overfunded, some other public service program will definitely bear the costs. It is the job the government to decide which sector should be given more space in the public budget and wh ich sector should be at stake. Given the nature of the public budgeting process, governments usually encounter difficulty in making decisions regarding starting of new programs and eliminating existing programs. They have to decide on these issue based on financial analysis of the current economic position of the country. In America, it is the responsibility of executives, legislators, as well as judiciary to maintain a check and balance on the public budgeting process. In the Federal government system, the congress enacts the budgets, whereas the president is held responsible for providing the guidelines for the preparation and submission of the budget. Public budgeting provides government officials the information about current financial position of the economy by detailing the capital in hand, as well as predicted future expenditures related to current and ongoing business processes. Proper financial analysis also helps governments cut off the extra costs and utilize the availabl e capital for other public service activities. Governments need to plan business and public wellness activities according to their financial budgets. If a government does not pay attention towards managing financial activities, problems can occur which may delay the planned activities (Lynch, 1991). Therefore, from public budgeting perspective, it is imperative to develop a perfect budget plan that should help the government in achieving the desired goals and objectives while maintaining the financial equilibrium. Having discussed the public budgeting system in detail, let us also talk about information, justification, and examination that play an important role in the development of a public budget. Budgeting is primarily based on information. Budgeting systems are all about gathering reliable and accurate information of both technical and political nature and using that information in making resource allocation decisions. Justification refers to process of deciding whether a publi c service program should be funded or not based on proper justifications. Examination, on the other hand, is all about analyzing the way organization’s resources have been used in the past and developing a course of action for future programs. Answer No. 2 Budget Process As Morgan (2006) states, â€Å"the success of a business depends on the capital budgeting decisions taken by the management† (p. 1). Budgets are prepared to set and accomplish organizational goals and objectives. These budgets help the organizations in preparing a