IDEAS home Printed from
   My bibliography  Save this article

Top-down Budgeting as a Tool for Central Resource Management


  • John M. Kim
  • Chung-Keun Park


Top-down budgeting emerged in the 1990s as a response to fiscal crisis. Previously, the traditional bottom-up approach to budget formulation had conferred centralised authority for resource allocation on the finance ministry. Then, in an attempt to control the growing fiscal deficits in the 1990s, the finance ministry only set the overall expenditure ceiling and subceilings, and delegated detailed resource allocation decisions to line ministries. However, the level of delegation and the method of determining the expenditure ceilings vary across countries. This article describes country experiences with top-down budgeting and makes policy suggestions for its use as a tool for central resource management. The article also explores the relative advantages, disadvantages, and complementarities of the two approaches.

Suggested Citation

  • John M. Kim & Chung-Keun Park, 2006. "Top-down Budgeting as a Tool for Central Resource Management," OECD Journal on Budgeting, OECD Publishing, vol. 6(1), pages 87-125.
  • Handle: RePEc:oec:govkaa:5l9htlz7h9q7

    Download full text from publisher

    File URL:
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Regina Pacheco, 2013. "Arm’s Length Bodies in Brazil: Contradictions and Challenges," Public Organization Review, Springer, vol. 13(2), pages 131-141, June.
    2. Lledó, Victor & Poplawski-Ribeiro, Marcos, 2013. "Fiscal Policy Implementation in Sub-Saharan Africa," World Development, Elsevier, vol. 46(C), pages 79-91.
    3. Itay Ringel & Asher Tishler, 2011. "The Government Budget Allocation Process and National Security: An Application to the Israeli–Syrian Arms Race," Chapters,in: Handbook on the Economics of Conflict, chapter 6 Edward Elgar Publishing.
    4. John M. Kim, 2010. "Korea's Four Major Budgetary Reforms: Catching up with a Big Bang," Chapters,in: The Reality of Budgetary Reform in OECD Nations, chapter 8 Edward Elgar Publishing.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:govkaa:5l9htlz7h9q7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.