Theoretical Application of Public Sector Planning and Budgeting

Theoretical Application of Public Sector Planning and Budgeting

Caroline E. Covell (Walden University, USA)
DOI: 10.4018/978-1-5225-3713-7.ch011
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The corporatization of the government has resulted in the change of the government structure and it has a negative impact on the fiscal budgeting. This change has also resulted in the equalization and generalization of the public-sector finance to private-sector finance. The impact is the disappearance of sources of funds and the adoption of the four-legged horse budget apocalypse and the categorical funding. This adoption has resulted in economic marginalization, social exclusion, massive corruption, and non-sustainability. A sustainable fiscal budget design requires the application of theory on practice and a holistic approach through the organizational structure and the timeframe of each jurisdiction, based on factual evidence and scientific analysis.
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President Lindon Johnson once stated in one of his speeches that public leaders should think of a way, using his education and knowledge expertise, to help the poor to raise them out of poverty, to help them to become economically independent, have enough food to eat for themselves and their family members, and have a roof over their head. This is something President Kennedy used to question, “Ask not what your country can do for you; ask what you can do for your country. President Truman even stated, “It is the job of the government to take care of the welfare of the people.”

In order for the government to take care of the social and economic welfare of the people, it needs people with education and knowledge expertise. Why it is important that the government to use education and knowledge expertise? Because, in theory and practice, the government is a difficult, vast, and a complex formal organization, with a demanding environment. It is a social administrator and a field of science and art. It is a hierarchical institution and one that “can provide the capacity and expertise to handle technically complex policy issues” (Meier & O’Toole, 2006, p.1).

The bureaucracy, itself, means the government institution as a whole unit – from the federal or national government, to the provincial government, the municipal government, and the village government. Encircle this unit is the military unit, which are also the bureaucracy, and this unit includes the army, police force, air force, the navy and the marine.

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