Kathleen CalvoSeptember 08, 2012

PA-510

The Government is highly reflected on the planning and budgeting of the economy.

Budget-makers plan for a specific accomplishment with the availability and uses of resources within a period of time; carrying out Government economic policy .

It forecasts the allocation of expenditures in such that we ask:• On what basis shall it be decided to allocate x

dollars to activity A instead of activity B?

Budget Makers face problems such as few revenues that meet the requests of all spending agencies and another Key addresses:• Gayer and Clark (Public Works- alternative

projects not tackled)

“The completed budgetary document represents a judgment upon how scarce means should be allocated to bring the maximum return in social utility” V.O. Key, Jr.

• What goods and services are to be distributed and where?

• Are based on the government’s priorities at which the appropriation will be determined

• If the quality of the document has supporting data the budget shall be allocated to the specific agency/department E.g. balancing public expenditures in all agencies

involved (Hay Group Study)

Influence of pressure groups in determining allocation of funds are of political interests.

The ‘value’ of public service is fruitless if the interest of the policy makers are not perceptible

• E.g. Health Insurance Companies on Guam, Minimum Wage, etc.

Budgets involve

• Public (Public Value and Implementation)

• Politicians (Advantage in the Political Arena)

• Economists (Consumer and Resources)

“As a larger and larger proportion of the national income is spent for public purposes, the sphere of the price system with its freedom of choice of objects of expenditure is more and more restricted.”

e.g. Guam’s recent tax refund

We shouldn’t overlook the efficacy of Budget officials, they further the accountability and timely judgments for the interest of the public.