Planning Programming Budgeting System (PPB)

As we had learned in our class of Administration of Financial Resources (PAD 343.02) budget can be understood as a collection of documents that describes what had been accomplished as a result of expenditure, it also describes the current situation of a government with respect to revenues and previews expenditure, and it is used for submission from the Executive branch to the Legislative branch for appropriation or approval. In other words, a budget is a “systematic plan which indicates where the money will come from, how much will be spent, and what it will be spent for. A budget is a fiscal plan for a given period of time.” and I have to add to this that there is a variety of budget formats. Even though this is a very complex explanation

This is the budget format “that allows authorities to engage in long-term planning and to determine program effectiveness and efficiency.” As you can see this format of budgeting provides what the Line-item format is missing. The way it works is by “relying on developing functional categories, for example, programs, in order to determinate the total cost of a program. In class, we learned that this format of budget allocates programs, which means that it rationalize programs by planning goals and objectives, developing programs to achieve these goals and budgeting for projects within each program. In other words, the government has to “analyze agency activities and functions according to stated objectives, then they go up all related activities and functions under a single structure and finally, they develop cost and output information for each program so that the expected impacts of various programs can be ascertained.” This format of budgeting has advantages and disadvantages as

It allows the authorities to “see exactly how their tax money is being spent, what priorities are being set, and whether and to what extent programs are delivering services.” This allows authorities to make a better judgment about quality and quantitative of the services provided. Furthermore, there are disadvantages as we learned in class this format of budgeting has not been widely adopted. “Implementing it is expensive and requires authorities to make difficult decisions among alternatives program” When I mentioned "expensive", it includes a great amount of time as well, and as we all know there is no time to lose in budgeting, time is considered gold. Another disadvantage of this format of budgeting is that “it decreases an authority’s control over the budget because it makes agency heads, not the governing authorities, accountable for the success (or failure) of a program” As I mentioned before this is a proof that anything that the government can’t control in the fulness, won't be