This presentation

1. Public Sector Budgeting

2. Introduction
Government process of planning,
authorizing, and controlling resources
Focus on service delivery, equity, and
public welfare.
Different from private sector (profit-
oriented)

3. Objectives of Public Sector Budgeting
• Resource Allocation – funding national priorities
• Economic Stabilization – manage inflation,
unemployment, growth
• Income Redistribution – progressive taxation and
welfare
• Accountability & Transparency – efficient use of
public money
• Fiscal Discipline – sustainable debt management

4. Types of Budgets
• Line-Item Budget – detailed expenditures, easy
control
• Performance Budget – links resources to results
• Program Budget – resources to specific programs
• Zero-Based Budgeting – all expenditures justified
yearly
• Capital vs. Recurrent Budget – investment vs. daily
expenses

5. The Budget Cycle
• Formulation – ministries propose, cabinet
approves
• Legislation – parliament debates and approves
• Execution – ministries spend approved funds
• Evaluation & Audit – audit, reporting,
feedback

6. Principles of Public Budgeting
• Annuality – one fiscal year
• Universality – all revenues & expenditures
included
• Unity – one consolidated budget
• Specificity – funds used only for approved
purposes
• Transparency & Accountability – open to public

7. Challenges in Public Budgeting
• Political influence and populism
• Revenue shortages in developing economies
• Corruption and weak controls
• Unrealistic projections and fiscal deficits
• Balancing short-term vs. long-term
development

8. Emerging Trends
• Participatory Budgeting – citizen involvement
• Gender-Responsive Budgeting – equitable
resource allocation
• Green Budgeting – climate and environmental
goals
• Digital Public Financial Management – e-
budgeting and transparency

9. Summary
• Public budgeting balances resources, policies,
and priorities
• Not just technical, but political and social
process
• Ensures development, equity, and
accountability