Budget cycle is a predictable pattern followed by the government or public agencies in managing their finances. It includes various stages such as planning, preparation, enactment, execution, and evaluation.
Budgetary Process: The process of how the budget is prepared and executed, from the initial step of setting objectives and priorities to the final step of evaluating outcomes.
Budgetary Control: The management process of ensuring that actual revenues and expenditures are within the limits of the approved budget.
Revenue sources: The different ways public administrations can generate revenue such as taxes, fees, grants, and loans.
Expenditure categories: The different categories in which public administrations allocate their resources such as personnel, operations, capital, and debt service.
Fiscal year: The period of time that a government uses to measure its financial performance, typically spanning twelve months.
Performance Measures: The metrics and indicators that public administrations use to evaluate their programs and achieve their objectives.
Budgetary decision-making: The process of prioritizing and selecting which programs and services to fund, based on the available resources and the perceived needs of the community.
Budgetary reporting: The communication of financial information to stakeholders, including public officials, taxpayers, and investors.
Revenue forecasting: The process of estimating the amount of revenue that will be generated by various sources.
Cost-benefit analysis: The process of comparing the expected costs of a program or project with its expected benefits.
Budgetary constraints: The limitations on public administrations' ability to fund programs and services, which may be caused by factors including economic conditions and regulatory requirements.
Contingency planning: The process of preparing for unexpected events, such as natural disasters or economic downturns, that may impact the budget.
Incremental budgeting: This type of budget cycle involves allocating funds based on the previous year's budget, with slight adjustments made for inflation or changes in demand.
Zero-based budgeting: This budgeting method involves starting from scratch each year, requiring all budget items to justify their funding needs.
Performance-based budgeting: In this type of budget cycle, resources are allocated based on expected performance outcomes, with an eye toward efficient resource utilization.
Planning, Programming, and Budgeting System (PPBS): A process that incorporates a systematic and analytical approach to budgeting that links it to planning and programming, with the goal of improving both efficiency and effectiveness.
Activity-based budgeting: Also called activity-based costing, this budget cycle uses an activity-based approach to determine the costs of various services or products offered by government agencies.
Program budgeting: This budget cycle involves creating specific programs or projects, examining their costs, and evaluating their effectiveness.
Priority-based budgeting: Prioritizes spending based on the most important services or programs that the government provides, with a focus on meeting the highest priority needs first.
Outcome-based budgeting: This budget cycle is designed to ensure that government spending is geared toward achieving specific outcomes or goals, with funding allocated based on performance measurement.
Participatory budgeting: This budget cycle involves community members in the budgeting process, allowing them to have some influence over how funds are spent.
Biennial budgeting: Budget that encompasses two years in a single budget cycle – usually introducing one budget proposal every two years rather than annually.