THEORY OF THE BUDGET:

Application to Developing
Countries
BUDGET ACCORDING TO SOME
ECONOMISTS
PROFESSOR PHILIP E. TAYLOR

The budget is the master plan of the government.

It brings together estimates of anticipated revenues
and proposed expenditures, implying the schedule
of activities to be undertaken and the means of financing
those activities. In the budget, fiscal policies are
coordinated, and only in a budget can a more unified
view of the financial direction which the
government is going to be observed.
ALLAN SCHICK

views it as a process consisting of a series

of activities relating expenditures to a set of goals.
GROOVES & BISH

Budgeting is the process through

which public expenditures are made.
Public budgeting serves as the allocation of
Expenditures among different purposes so as
to achieve the greatest results.
AARON WILDAVSKY

Budget is a document containing words and

figures which proposes expenditures
to certain items and purposes
 ERIC KOHLER

It is a financial plan which serves as the pattern for and

a control over future operations and a systematic plan
for utilization of manpower material or other resources
 ROBERT BANGS

Budget relates to public expenditure & policy analysis

OBJECTIVES OF BUDGETING
✔
Strengthening administrative process
✔
Achieving more effective or more stringent fiscal controls
✔
Securing efficiency & economy
✔
Effecting better utilization of resources
✔
Controlling inflation
✔
Broaden awareness & understanding of budget control
WARDS A PRACTICAL AND OPERATION
THEORY OF THE BUDGET FOR
DEVELOPING COUNTRIES
 Budgeting is a matter of philosophy
as can be gleaned in the diverse interests
of the present government
As well as in the interests of
the future ones
ERNE LEWIS’ DIMENSIONS OF BUDGETIN
 PRINCIPLE 1

THE RETURN FROM EVERY EXPENDITURE MUST BE WORTH ITS COST

 PRINCIPLE 2

INCREMENTAL ANALYSIS IS NECESSARY BECAUSE

OF THE PHENOMENON OF DIMINISHING UTILITY
 PRINCIPLE 3

COMPARISON OF RELATIVE MERITS CAN BE MADE ONLY IN

TERMS OF RELATIVE EFFECTIVENESS IN ACHIEVING
A COMMON OBJECTIVE
 THEORY ON BUDGET
as applied in public fiscal administration
by DR. JOSE SOBERANO
A POSITIVE GOVERNMENT
SCIENTIFIC POLICIES
AN ABUNDANT ECONOMY
A RESPONSIVE SOCIETY
THANK YOU!