Key terminology related to public budgeting and finance administration.

 

• Define public administration and why it is important.
• Define and explain key terminology related to public budgeting and finance administration. 
• Differentiate between the four stages of public budgeting (preparation, approval, execution, and audit/evaluation) and describe their respective functions.

 

 

Sample Answer

 

 

 

 

 

 

 

 

 

Public Administration and Its Importance 🏛️

 

Public administration is the implementation of government policy and the academic study that prepares civil servants for working in the public sector. It is essentially the management of public programs and services.

Importance: Public administration is vital because it is the mechanism through which the state translates political decisions (laws and policies) into reality (services). It is responsible for:

Service Delivery: Providing essential public goods and services (e.g., healthcare, education, defense, infrastructure).

Policy Implementation: Ensuring policies decided by the legislature and executive branches are carried out efficiently, effectively, and equitably.

Accountability: Ensuring government actions are transparent, fiscally responsible, and answerable to the public.

Stability and Order: Maintaining law, order, and social well-being, which are foundational for a functioning society and economy.

 

Key Terminology in Public Budgeting and Finance

 

Public Budgeting and Finance Administration is the process by which government revenues are raised and spent. Here are key related terms:

The Four Stages of Public Budgeting

 

The public budgeting process is a continuous cycle involving four distinct stages, each with specific functions:

 

1. Preparation (The Executive Phase)

 

Function: This is the phase where the Executive Branch (President, Governor, Mayor, or Agency Heads) develops the initial budget proposal. It involves estimating future revenues, reviewing agency budget requests, setting policy priorities, and ultimately compiling the consolidated budget document.

Key Activities: Budget calls (instructions to agencies), agency requests (justifications for funding), executive review and hearings, and the final assembly of the executive budget submission.

 

2. Approval (The Legislative Phase)

 

Function: This stage involves the Legislative Body (Congress, Parliament, City Council) reviewing, debating, modifying, and ultimately enacting the budget proposal into law. The legislature acts as the representative of the public interest, examining the budget's policy implications and fiscal soundness.