Comparative Budgetary Approaches in Public Organizations

Abstract

The aim of this article is to give a comprehensive discussion of the four main approaches to budgeting, starting off with line item budgeting, program and performance budgeting, planning programming budgeting system and zero-base budgeting. The discussion covers the history, concept, procedures, advantages and disadvantages of each specified approach. The motivation behind this discussion was to seek a better understanding and familiarity with each of the various approaches to budgeting. None of them, however, can be regarded as a complete solution to budget problems. Each approach carries both strengths and weaknesses and thus cannot be applied indiscriminately to any given situation or financial environment. A solution for any budget problem depends on the nature of the organization affected and hence would require a thorough assessment of its operating environment before being carried out.

Keywords: Line item budget, Program and performance budget, Planning programming budgeting system, Zero-base budgeting, Decision making, Financial planning