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Finance & Accounting
Pages 9 (2259 words)
Public Sector Budgeting Name Professor’s name Course Date Governments have to prepare budgets each fiscal year in order to operate and to determine the economic performance. The budget prepared by the relevant departments undergoes several stages and various stakeholders are involved in the process.
It is majorly done by the executive and should not be made a secretive process. The first important step of this stage is to set a fiscal policy and it involves estimation of the resources available for spending. The treasury department will then issue a directive of spending to all the departments based on the policy framework (Khan & Hildreth, 2002). Negotiations will follow between the spending departments and the treasury with a bid to allocate the resources. The process then ends with the development of a consolidated draft budget that is approved by the cabinet or a higher political authority that will deliberate on the contentious issues before moving to the next budget stage. After drafting a comprehensive budget, the document will be laid before the legislature for approval. Government regulations bar the executive from making expenditures without obtaining sanction from the legislature. Parliament will closely scrutinize the draft budget and has the option of approving, rejecting, amending or in some cases substituting the draft that is presented by the executive (Khan & Hildreth, 2002). The legislature will also have the mandate of approving the relevant laws on taxation before they take effect. It is important to notice that the period taken by the legislature in approving the budget varies from country to counter. ...
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