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.
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References
Allen, R. 2009. The Challenge of Reforming Budgetary Institutions in Developing Countries. Washington, DC: IMF.
Diamond, J. 2006. “Budget System Reform in Emerging Economies,” IMF Occasional paper no. 245, Washington, DC.
Public Expenditure and Financial Accountability (PEFA) Secretariat. 2005. Public Financial Management Performance Measurement Framework. Washington, DC: World Bank.
World Bank. 1998. Public Expenditure Management Handbook. Washington, DC: World Bank.
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© 2013 Jack Diamond
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Diamond, J. (2013). Policy Formulation and the Budget Process. In: Allen, R., Hemming, R., Potter, B.H. (eds) The International Handbook of Public Financial Management. Palgrave Macmillan, London. https://doi.org/10.1057/9781137315304_10
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DOI: https://doi.org/10.1057/9781137315304_10
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-33598-5
Online ISBN: 978-1-137-31530-4
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