i) Types of relationships between Government policy and the annual budget:

• Annual budget is designed as a plan for implementing government policy.
• Annual budget translates government policy into financial outlays, inputs, and outputs.
• Annual budget serves as a guide for managing the economy.
• The budget document is used as a means of monitoring possible directions and reactions or changes to the implementation process.

ii) Reasons why the budget is regarded as a management tool for public accountability:

• Budgeting involves public sector managers in the budget process.
• The budgetary process assesses whether activities of public sector entities are the most effective means of achieving their objectives.
• The budget assesses the cost-effectiveness and cost-efficiency of public sector operations.
• The budget plans the cost of inputs, outputs, and activities linked to public sector objectives.
• The budget determines recurrent, development, and investment expenditures.