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Policy Formulation and the Budget Process

In: The International Handbook of Public Financial Management

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  • Jack Diamond

Abstract

The budget should be regarded as one of the government’s most important policy documents. Ideally the budget process should facilitate this policy role in all phases of the budget cycle. This chapter argues, however, that budget systems often fail to successfully fulfill this important function for two main reasons: flaws in the way they are designed and flaws in the way they are operated. Unfortunately, both drawbacks tend to be prevalent in countries that operate traditional budgeting systems, focused mainly on financial compliance rather than policy delivery.

Suggested Citation

  • Jack Diamond, 2013. "Policy Formulation and the Budget Process," Palgrave Macmillan Books, in: Richard Allen & Richard Hemming & Barry H. Potter (ed.), The International Handbook of Public Financial Management, chapter 9, pages 193-218, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-31530-4_10
    DOI: 10.1057/9781137315304_10
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