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Types of Budgeting
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Types of Budgeting
The comprehensive procedure of budgeting identifies as the systematic plan to make necessary decisions about the aspects of money. It provides the roadmap about the proper utilization of the money and the ways to enhance the spectrum of revenues. The feature of budgeting is used by the governments to establish a balance between the elements of expenses and income ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"Mk7grtXc","properties":{"formattedCitation":"(Jones & Baumgartner, 2004)","plainCitation":"(Jones & Baumgartner, 2004)","noteIndex":0},"citationItems":[{"id":1622,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/RYDG9D5Z"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/RYDG9D5Z"],"itemData":{"id":1622,"type":"article-journal","title":"A model of choice for public policy","container-title":"Journal of Public Administration Research and Theory","page":"325-351","volume":"15","issue":"3","author":[{"family":"Jones","given":"Bryan D."},{"family":"Baumgartner","given":"Frank R."}],"issued":{"date-parts":[["2004"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Jones & Baumgartner, 2004). There are different models of budgeting which are successfully applied in different forms of considerations and circumstances. Here the main concern is to critically discuss the concepts of rational budgeting and incremental budgeting models to enhance understanding of the prevailing differences between these two forms of budgeting.
The approach of rational budgeting model is different from the incremental budgeting model because it only concerns the provision of funding for the anticipated presented needs without considering the structure of past funding. On the other hand, the facet of incremental budgeting model associated with the perspective of different forms of political compromises. The rational model differs from the incremental model because it never focuses on the consideration of the democracy. It referred to the outcome of the specific ideology set by the government about the needs of the society ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"QjW9Ihvn","properties":{"formattedCitation":"(Khan & Hildreth, 2002)","plainCitation":"(Khan & Hildreth, 2002)","noteIndex":0},"citationItems":[{"id":1621,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/SYZ7VPUC"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/SYZ7VPUC"],"itemData":{"id":1621,"type":"book","title":"Budget theory in the public sector","publisher":"Greenwood Publishing Group","ISBN":"1-56720-281-0","author":[{"family":"Khan","given":"Aman"},{"family":"Hildreth","given":"W. Bartley"}],"issued":{"date-parts":[["2002"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Khan & Hildreth, 2002). The rational budgeting model is established as the more focused form of consideration. When it comes to the disadvantages of rational budgeting model than it is essential to indicate that it is one time-consuming model as it requires different forms of tracking. It is difficult to track about the spending of each dollar. On the other hand, the major advantage of the incremental model is that is one stable model which is not extensively affected by changes. The main advantage of incremental budgeting model is that there is not enough space for offering new ideas of growth and development.
To conclude the discussion about the comparison of both the budgeting models, it is essential to mention that both the models can be effective referring to the specific conditions. It is important for the governments to take necessary measures of improvements according to the changing perspectives of revenues and expenses in the country.
References
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Jones, B. D., & Baumgartner, F. R. (2004). A model of choice for public policy. Journal of Public Administration Research and Theory, 15(3), 325–351.
Khan, A., & Hildreth, W. B. (2002). Budget theory in the public sector. Greenwood Publishing Group.
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