Finance Budgeting - Assignment

Running Head: Finance
0
Budgeting
3/6/2020

Finance
1
Contents
Compare the US federal budget process and state/local budgeting. Discuss at least two theories
that explain federal and state budget changes over the last 50 years...............................................2
What are the features, advantages, and disadvantages of item budgeting, performance budgeting,
and zero base budgeting...................................................................................................................3
Discuss the differences between a capital budget and an operating budget. In terms of assessing
expenditure decisions, discuss the factors that a public manager should consider.........................4
References........................................................................................................................................6

Finance
2
Compare the US federal budget process and state/local budgeting. Discuss at least two
theories that explain federal and state budget changes over the last 50 years.
US Federal Budget: This is the budget in which the government estimates the spending
and revenues for each fiscal year. For the upcoming fiscal year, the federal budget of the itemizes
the expenditure of the funds of the public. The US federal budget is compromised of the
economic philosophies and the historical debates including the financial representatives of the
government. This budget is the important policy instrument for the government and manages the
federal purse by fulfilling the constitutional responsibilities. Federal budget is very helpful as it
helps in taking the decisions regarding the spending and the tax of the US and also helps in
evaluating lending and borrowing the money. With the help of this budget the government
invests in the technologies and the education of the US country and benefits the American people
by providing them the goods and services. The areas where the resources are required are
evaluated by them so it helps the government in allocating the resources in the sustainable
manner.
State Budgeting: The state budget includes the budget of the state which includes the
state public sector income and expenses and it also affects the state taxes. For the fiscal year, a
detailed financial plan is provided which includes expenditures and the financing with the
legislative executive budgetary. In this budget all the revenues related to the tax and non tax are
stated and with the help of this the government evaluates the budget for making the development
of the state.
Theories of this budget: A theory of budgetary process is applied so that fiscal
federalism structure in the United States can be applied. The capital flows, the expenditures
made by the government on the different project cam are evaluated through the budget theory.
there is another theory of the fiscal federalism which is adopted in the budget where the
government functions are divided and the different level of the federal and the state government
is also differentiated which helps in making the budget easy (Chung, 2019). The theory of fiscal
federalism is applied as it helps in evaluating the instruments and the functions that which level
of the government is centralized and which are decentralized.