- 10 Marks
Question
The budgeting process is a cycle of events which occur sequentially every
year and which results in the approved budgets in ministries and extra ministerial departments.
Required:
Explain five factors militating against the budgeting system in the public sector.
Answer
Factors Militating Against the Budgeting System in the Public Sector
- Poor Revenue Forecasting: Inaccurate projections of government revenue, leading to over-ambitious budgets.
- Delayed Budget Approval: Frequent delays in legislative approval of the budget, affecting timely implementation.
- Lack of Accountability: Insufficient accountability mechanisms to track and ensure proper use of budgeted funds.
- Political Interference: Political considerations often override economic priorities in budget preparation and execution.
- Inflexibility in Spending: The rigidity of budget allocations, preventing adjustments in response to emerging needs during the fiscal year.
- Tags: Budget Process, Government Expenditure, Public Sector Budgeting
- Level: Level 2
- Topic: The Budgeting Process in the Public Sector
- Series: NOV 2020
- Uploader: Kwame Aikins