Essay Example on Public Budgeting Systems

3 pages
580 words
University of Richmond
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Public budgeting systems are in place as they act as guidelines on how to divide the resources for the benefit of every individual in the country. The public administrators manage budgets on the state level as they put the interests of every citizen as a priority. Public budgeting on the Federal level is important as it helps allocate the available resources to the needs of the citizens. Budgeting also helps in arranging the needs of the public into urgent and less important necessities of the citizens. Raadschelders & Lee (2011) argue that understanding the needs of the public helps the decision makers arrange them into ranks. There are those that need immediate intervention while others may need some time before they are fulfilled. The Federal State controls all resources and determines what each state gets as an allocation. They act as the overseer of the public budgets and ensure that at the end of the governments financial year, they get timely reports. From the reports, they compare the pre-determined against the actual expenses. If there are variations, they identify the underlying issues that may have caused them.

Planning in the public forum is important as it helps the Federal government ensure that all states get resources according to their needs. It is worth noting that some states have more needs than the others do and may therefore need more resources than they may (Raadschelders & Lee, 2011). Managing skills of the heads of the state, county, and the municipal also determines the share they get from the national resources. One of the guidelines that help support the public budgeting systems is defining the fiscal policies that guide the application of budgeting on the limited resources. Apart from formulation of policies, there is needed the skills to manage the public borrowing and debts which all contribute to funding the national budget. For instance, public borrowing puts the nation at a debt that it must pay within the period allowed by the lenders. Paying off the debts may take a longer period, which means that the managers of the public funds must consider investing the money in the right channels that will help generate the income plus the interest needed to pay off. At the beginning of the government financial year, the public administrators must consider the amount of resources they have when budgeting and allocate some share to pay off the debts. Management of such minute details becomes necessary as the different states contribute to the wellbeing of the Federal welfare.

The Federal state also controls the amount of spending they incur at each time. The state ensures that it undertakes investing in projects that attract better returns while meeting both the capital and repetitive expenditure requires the skills and balancing abilities of the administrators. Through this, they ensure that the public resources are managed in the best way possible (Raadschelders & Lee, 2011). In a managed system, the budget allocates provisions for some special groups in the country. For instance, the healthcare sector of people living with disabilities and the women get more resources. In conclusion, the public budgeting must consider the stability of the economy to avoid incurring more losses during implementation of selected projects. Reviewing the performance of the projects is paramount since financial resources are limited even in the Federal level.



Raadschelders, J. C., & Lee, K. H. (2011). Trends in the study of public administration: Empirical and qualitative observations from Public Administration Review, 20002009. Public Administration Review, 71(1), 19-33.


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