Transcription of Chapter 4. THE BUDGET PREPARATION PROCESS A …
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Chapter 4. THE BUDGET PREPARATION PROCESS A …
Chapter BUDGET PREPARATION OF BUDGET PREPARATIOND uring BUDGET PREPARATION , trade-offs and prioritization among programs must bemade to ensure that the BUDGET fits government policies and priorities. Next, the mostcost-effective variants must be selected. Finally, means of increasing operationalefficiency in government must be sought. None of these can be accomplished unlessfinancial constraints are built into the PROCESS from the very start. Accordingly, thebudget formulation PROCESS has four major dimensions:1 Setting up the fiscal targets and the level of expenditures compatible withthese targets. This is the objective of preparing the macro-economicframework. Formulating expenditure policies. Allocating resources in conformity with both policies and fiscal targets. Thisis the main objective of the core processes of BUDGET PREPARATION . Addressing operational efficiency and performance Chapter focuses on the core processes of BUDGET PREPARATION , and onmechanisms for aggregate expenditure control and strategic allocation of and performance issues are discussed in Chapter 15.
Chapter 4. THE BUDGET PREPARATION PROCESS A. OBJECTIVES OF BUDGET PREPARATION During budget preparation, trade-offs and prioritization among programs must be
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