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Measuring the Size of the Government - Essay Example

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The paper gives detailed information about public finance. The relationship between public budgeting and public finance administration often confuse several people. Both public budgeting and public finance administration involve the management of the public funds and resources…
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Measuring the Size of the Government
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Preparing a Budget Request Due to the increasing number of residents in the city, it is important that security personnel be increased. This is due to the current insufficient number of the security personnel in the town. At the growth rate of about 3 to 5 percent per year, the city cannot risk by not budgeting for additional security. The city in the past six years has not been able to acquire enough police officers. The current number of police officers stands at 30 uniformed officers and 12 support staff. Further, due to the increasing number of people in the city, the city’s personnel have experienced an increase in workload. This is as a result of the increasing number of the people seeking the council’s services and help. The police officers too have experienced an increase in workload. The current number of police officers cannot handle the increasing insecurity cases. There is an increasing likelihood of crime rates rising to uncontrollable levels if police officers are not added into the council’s security system. The increased workload cannot be covered by part time employees or by shifting employees from one area to another since there are few employees in the council as well as part time employees. Even if the part time employees were to be use, the workload would still increase. The need to raise the number of workers and the number of police officers has lasted now for about five years. The city has over the last five years increased in population from less than 25000 residents to over 75000 residents currently. In addition, the city is also experiencing moderate rates of growth of between 3 and 5 percent per year, and its tax base is 60 percent residential or vacant land zoned residential, 30 percent commercial, and 10 percent industrial The relationship between public budgeting and public finance administration often confuse several people. Both public budgeting and public finance administration involve the management of the public funds and resources. To several people, the two terms do not make much difference. Most public budgeting and public finance books cover similar and different topics without any apparent order, rhyme and reason. Public finance administration and public budgeting are closely linked and cannot be discussed in isolation. Public budgeting at the city will involve making decisions concerning public funds and expenditures while public finance administration involves the techniques employed while dealing with the public revenues. Further, public budgeting can be seen to being a planned acquisition and the utilization of revenues by public entities. This is similar to the situation whereby individuals and households prepare budgets when making and spending money. This simple meaning covers the several and highly nuanced and interrelated phenomena that constitute public budgeting, such as the large number of individuals involved, the fact that budgets cover public or communal concerns about which individuals hold divergent views, the extended time periods, the idea that budgets are binding, the technical complications of the subject matters and the sheer size of the funds involved in the budget. In most cases, budgeting proposals and results of the city are noted down in documents that are designed for the collection and spending of money over a given duration of time. One complicated feature of public budgeting is the manner in which several documents are used by a variety of persons, and for different purposes. The nature of documents used reflects the formality of public budgeting and the processes used to coordinate the activities of the large number of individuals involved in the process. Normally, individuals and households budget for their own needs. However, public budgeting in public organizations budget for their selves and their constituents (Rosen, 2005). Budgets involving households and personal ones can be made from one point to another. They range from formal to informal and from rigid to flexible. Since public involve the cooperation of several individuals and are binding for fixed duration of time, they proceed in a formalized process with separate beginnings and endings and the definite intermediate steps. There are four stages that must be followed in the city’s budgeting process. The processes include preparation and formulation, submission and approval, policy making, legal enactment, implementation and evaluation or audit. The first process involves coming up with the estimates of expenditures and resources for a defined period of time. In addition, the first process involves designing the call letter that directs various individuals in charge of the public to meet the budgeting responsibilities. The time at which the call letter is sent can be determined by law or can be subject to administrative convenience (Rosen, 2005). Further, the estimation of the resources and the expenditure is normally done in various locations. In most cases, especially those involving taxes, the estimates of the resources are prepared by the central government administrators. These estimates are normally done on the basis of general directions found in the call letter. When estimating expenditures, the administration should consider what activities and strategies to propose, and what items to be acquired in order to undertake the strategies, and what the prices are likely to be. The operating bodies in charge of public budgeting are proponents of spending while the central government administrative officials are proponents of wise usage and careful expenditure of the public resources (Hyman, 1996). Public budgeting process is highly political and determines who gets what and where in the society. It also determines whose policy preferences will be honored; the city’s budgeting is also expected to be political due to the number of people involved. Actions taken on whether to increase or decrease taxes or expenditures, to construct bombers or avail health care for the underprivileged, and to hire security officers or social workers are all about budget actions and decisions. These decisions are made concerning the collection and the use of the money. Councils’ officials normally make a choice on taxes, education, highways, prisons and welfare. On the contrary, local government spending choices abound whereas easy resources escape administrators. Spending opportunities for non profit organizations normally surpass their revenues as well (Musgrave, 1989). Public budgeting can be studied from a number of perspectives. Apart from it being a plan, a process and a matter of politics, public budgeting can also be seen as a control management, and planning devices. Several other identifiable contributors give rise to useful perspectives necessary for the understanding of the process. Political leaders, policy, makers often make decisions on resources so as to meet their role to act for the public and meet the constituent’s concerns. Conclusion How the city’s public budgeting and public finance administration relate can be viewed from conceptual and a practical view point. Public budgeting in the city focuses on the issues of alternative choices, typically at abroad level of detail. From a conceptual viewpoint, the city’s budgeting will relate to all areas of public finance administration. Further, the city’s budgeting will provide an arena for the large decisions that affect the lives of the residents. The estimation of the City’s resources and the expenditure is normally done in various locations. In most cases, especially those involving taxes, the estimates of the resources are prepared by the council’s administrators. These estimates are normally done on the basis of general directions found in the call letter. When estimating expenditures, the city’s administration will consider what activities and strategies to propose, and what items to be acquired in order to undertake the strategies, and what the prices are likely to be. The operating bodies in charge of public budgeting are proponents of spending while the central government administrative officials are proponents of wise usage and careful expenditure of the City’s resources. References Abizedeli, S. (1990). Measuring the size of the government. New York: McGraw-Hill. Hyman, D. (1996). Public finance: a contemporary application of theory to policy. Orlando: Dryden Press. Musgrave, R. (1989). Public finance in theory and practice. (5th ed). New York: McGraw-Hill. Rosen, H. (2005). Public finance. New York: McGraw-Hill. Read More
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