Public Budgeting and Financial Management

What is a budget?

Why is a Budget required?

What are the major components of a Public Budget?

What are the revenue sources for a government?

The revenue sources differ depending on the level of government (i.e. federal, state, and local). Although the federal government collects most amount of tax, states and local governments have a wider menu of choices with respect to taxing:

What are the major classes of public expenditure?

What are the major differences between the Federal government and other governments (i.e. state and local) in terms of budgeting?

What are the different approaches to preparing a budget? [The time periods shown in parentheses are when the Federal government broadly subscribed to such policies]

Most of the above budget approaches are managerial in their nature, in the sense that there is a rational decision making process involved. Yet, budgets also have a political angle, where the decisions are ratified based on political power play and narrow interests of one's constituency. For example, "pork barrel" projects tend to be based on one's political ability to get such projects to his or her constituency.