Running Head: BUDGET AND PUBLIC FINANCE BUDGET AND PUBLIC FINANCE Colorado Technical University Budget and Public Finance Nana Lawson Individual project unit 4 July 31st 2019 BUDGET AND PUBLIC FINANCE. Finance and budgeting are essential to public administration since it involves spending and transparently allocating public dollars. Managing funds mostly involves budgeting and understanding public reaction (Simon, H. A., Smithburg, D. W., & Thompson, 2017). Financial resource availability shapes many of the outcomes that matter to public administration including the effectiveness of public service, undertaking management reforms, performance implications and decisions to pursue. In 1988, the chamber of deputies changed the procedures regulating the budget session to control the formation of public needs. The current financial crisis of our world today has forced organizations to cut budgets, reset priorities, restructure services and assume new financial responsibilities. This reminds us of the centrality of financial resources management to the public service. Budgets help in laying a foundation for the achievement of goals. When we focus on public finance, political, economic, legal and administrative aspects of public finance are examined. Budgeting is not an easy process as it may seem and it involves many things. Many issues are involved when it comes to budgeting and public finance. Each budgetary decision made impacts various parts of a community that mainly depend on the government. For instance, looking at the day today ever-rising population, limited resources are a major factor when budgeting due to the large percentage of people existing in a world that has limited resources not enough to sustain them all. Communication has also become an issue when we consider budgets. Just as many people say, communication is the key to success. For continuity to take place, communication must be considered. When we look at our world most communication mostly takes place through online services which mostly involves lies and corrupt activities. This hinders the budget and public finance process since almost everything relies on new technology. Change of culture has also become a hindrance when we look at the differences between then old and new centuries since this century involves a lot of things. Infrastructure comes in since dealing with infrastructure and finding the way to invest in it with revenues that are not growing at the same rate as costs are hard. Vision is also an issue since the government lacks an up straight vision on where the community is going. The government and its staff majorly base on obtaining power, being the best which makes it hard to budget (GrReed, B. J., &Raudla, 2010). This is because, when we focus on a vision, it becomes easier for budgeting since we can know what needs ...

1. Running Head: BUDGET AND PUBLIC FINANCE
BUDGET AND PUBLIC FINANCE
Colorado Technical University
Budget and Public Finance
Nana Lawson
Individual project unit 4
July 31st 2019
BUDGET AND PUBLIC
FINANCE.
Finance and budgeting are essential to public
administration since it involves spending and transparently
allocating public dollars. Managing funds mostly involves
budgeting and understanding public reaction (Simon, H. A.,
Smithburg, D. W., & Thompson, 2017). Financial resource
availability shapes many of the outcomes that matter to public
administration including the effectiveness of public service,
undertaking management reforms, performance implications and

2. decisions to pursue. In 1988, the chamber of deputies changed
the procedures regulating the budget session to control the
formation of public needs.
The current financial crisis of our world today has
forced organizations to cut budgets, reset priorities, restructure
services and assume new financial responsibilities. This
reminds us of the centrality of financial resources management
to the public service. Budgets help in laying a foundation for
the achievement of goals. When we focus on public finance,
political, economic, legal and administrative aspects of public
finance are examined.
Budgeting is not an easy process as it may seem and it
involves many things. Many issues are involved when it comes
to budgeting and public finance. Each budgetary decision made
impacts various parts of a community that mainly depend on the
government. For instance, looking at the day today ever-rising
population, limited resources are a major factor when budgeting
due to the large percentage of people existing in a world that
has limited resources not enough to sustain them all.
Communication has also become an issue when we
consider budgets. Just as many people say, communication is
the key to success. For continuity to take place, communication
must be considered. When we look at our world most
communication mostly takes place through online services
which mostly involves lies and corrupt activities. This hinders
the budget and public finance process since almost everything
relies on new technology.
Change of culture has also become a hindrance when
we look at the differences between then old and new centuries
since this century involves a lot of things. Infrastructure comes
in since dealing with infrastructure and finding the way to
invest in it with revenues that are not growing at the same rate
as costs are hard.
Vision is also an issue since the government lacks an up
straight vision on where the community is going. The
government and its staff majorly base on obtaining power, being

3. the best which makes it hard to budget (GrReed, B. J., &Raudla,
2010). This is because, when we focus on a vision, it becomes
easier for budgeting since we can know what needs to be done,
the requirements needed and all that easily based on the vision
which will help to direct us to a successful budget.
Increasing citizen demands is also an issue when we
consider the available limited resources due to high population
plus the basic needs of humans. This is a hindrance in that
everyone is supposed to be considered when it comes to
budgeting as citizens of a country. Since a lot of people are
involved, a lot of demands will be available making it hard to
budget considering every person's wishes. On top of that, local
government staff has staffs that are not ready to inform the
people of the scarcity of resources.
Balance is the most common problem due to the
incapability to be able to budget between the available
resources, public demand, and many others. To have a
satisfactory budget, we must consider all these factors to ensure
success. Since limited resources are available, it is hard to
prepare a budget fixing every single detail.
Sustainability which is rarely practiced is also an issue
for as they say it is better to respond to something when you
have the time to fix it. Citizen perception which helps in
understanding citizens and determining the step forward when it
comes to budgeting for them has also become a hindrance due to
corruption and fight for power. There are many other issues
involved when it comes to budget and public finance involving
minor which are barely noticeable and the major ones which I
have briefed.
Looking at the case like the United States which faces a
global financial breakdown, is a good example illustrating the
issues associated with budgets and public finance in public
administration. Student debts are high and unemployment rates
look much like in 2007 due to overspending. For about 50 years
the budget of the United States has been on cash deficit. In
2015, a federal government-runs cash deficit of $438 billion

4. after collecting $3250 billion in revenues and spending $32668
billion hence rise the public debt from 33.7% to 73.6% of gross
domestic product which is a major increase.
The GASB is one of the models used by American
governments to generally solve longer-term budgets. Tens of
thousands of local governments are focusing on implementing
the GASB statement 34. The GASB undertook to redesign the
model of GAAP which mainly focused on solving short term
collections due to the belief of the power of tax (Sage
Publicationsuber, 2016). The GASB did a lot of improvements
by majorly focusing on much longer-term budgets rather than
short term making it easier to approach the visions of a country
by setting a clear budget based on very many considerations.
Budget formation takes place within the executive and
involves departments submitting their budget authorities like
Ministry of finance or treasury to come up with an agreement on
how funds will be allocated. Once the budget is drafted, the
legislature has to approve all public spending and taxation in
public finance. CSOs help legislatures in clear understanding of
the issues relating to the budget for better decisions. Funds are
distributed as per the approved budget after adjustments caused
by uncertainties. Government account and financial statements
are audited. Legislatures now use insights gained from audit
reports to draft future budgets.
When we talk about budgets and public finance many
questions are involved when considering public administration
(Peter Lang. Swain, 1997). These questions may be like, what is
budgeting? What is public finance? The involvement of public
finance and budgeting on public finance? Risks involved in
budgeting? The reaction of the government on stopping drain
due to too much spending? How to maximize available
resources to fit in with the budget? Minimum wages and public
finance? Tax burden issues? How to deflate tax revenues and
many more.
Considering these questions, my data collection strategies
majorly based on surveys which are most commonly used, easy

5. to use and fast. This is because most people today majorly drive
their focus online. Social applications like Facebook are the
most appropriate to use when one wants to get a promising
analysis for they are commonly used all over the world. I used a
link to obtain my knowledge which I forwarded to Facebook
containing questions so I can get views from all over the world.
I obtained my information from simple sampling based on
the many comments I got. Many comments were interrelated,
some were not understandable, some positive, some negative
and many other types. Since it is a diverse topic, based on the
questions I got, the response was promising due to the different
understanding of the questions per person. Some responses led
me to look at another direction on my questions and get
different perspectives on the topic.
According to my research, I was able to see many
perspectives on budgets and public finance. Public finance and
budgeting is a very large area since it involves citizens,
business organizations, the governments, particularly all people
in a country since it consists of taxes and many activities that
help in the running of the country. Budgets are majorly involved
in developments and majorly help in focusing on visions that
help in development making them important.
Public administration majorly involves the budgets
and public finances helping countries in their long run to
development for countries at all levels either developed,
developing or undeveloped. Each country has these budgets,
focusing on achieving a vision and goal and also to help in the
running of activities in the country to maintain order within a
country and also making the country work as a team and
supporting each other.
REFERENCES
Simon, H. A., Smithburg, D. W., & Thompson, V. A.
(2017). Public administration.

6. GrReed, B. J., &Raudla, R. (2010). Constitution, public finance,
and transition: Theoretical developments in constitutional
public finance and the case of Estonia.
Frankfurt is Main: Peter Lang. Swain, J. W. (1997). Public
finance administration.
Thousand Oaks, Calif: Sage Publicationsuber, J. (2016). Public
finance and public policy.