Politics of The Budgetary Process

Topic: Politics of the Budgetary Process Question/Prompt: Why is the public budgeting process inherently political? In other words, why is it difficult to achieve agreement relative to a federal budget? 300 word count

POLITICS OF THE BUDGETARY
PROCESS

Politics of Budgetary Process
Generally, a budget is a plan managed and run by the government of any country. It is a
proper plan prepared with the aim of defining schemes, goals and objectives to be
accomplished over a pre-decided period of time. A budget of the country also outlines the
monetary value of anticipated revenues and expenditures likely to take place over the
financial year.
It is crystal clear that the method of economic allocation can never be separated from political
considerations. A state requires variety of resources for its smooth functioning and budget
classifies these resources. It decides upon the distribution of society’s scarce resources to
competing groups which are highly biased by the different political ideologies.
It is better to consider government budgeting as highly political than regarding it as technical.
Technical portion of a budget involves its preparation as per applicable rules, standards, laws
and regulations.
Budgetary decisions are highly influenced by the views and actions of political actors.
However, reformists are of the view that budget related decisions should be highly efficient
and they believe that the verdicts and actions of these politicians are highly irrational and
least efficient.
There are interest groups too who has a significant impact on the budgetary decisions. These
interest groups are a group of highly influential stakeholders who are responsible for
budgeting and policy formulation. This group often tries to draw the budget as per their needs
by hiring consultants from the public sector (PATIMES, 2015).
Since, the decisions like how much funding an interest group would get, which program
would receive funding etc. are taken by the government officials, these budget are highly
influenced by the thought process of politicians (Johnson, 2017).
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Politics of Budgetary Process
Sometimes, the budget is prepared in a manner that perfectly tunes with the vision of political
party. For example, the areas like public infrastructure and creation of job opportunities could
be the focus area of Republican party. Therefore, majority of budget expenses may account
for higher spending towards public infrastructure and creation of job opportunities in the
country.
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Politics of Budgetary Process
References
Johnson, W. 2017. Finance Management Techniques. Available at: https://bizfluent.com/list-
7305812-finance-management-techniques.html (18 February, 2020).
PATIMES, 2015. The Political Dynamics Behind Government Budgeting Process. Available
at: https://patimes.org/political-dynamics-government-budgeting-process/ (18 February,2020).
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