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    Toward A Practical and Operational Theory of The Budget For Developing Countries

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    ducanes
    This document discusses theories and principles of budgeting for developing countries. It addresses the need to prioritize expenditures based on social values and the demands of different groups. Budgeting should balance present and future interests through techniques like feasibility studies and cost-benefit analysis. The document also outlines Lewis' principles for an economic theory of budgeting, including applying the basic economic test of comparing returns on alternative expenditures and using incremental analysis. Finally, it introduces Soberano's positive government budget theory focused on achieving societal balance, scientific policies, an abundant economy, and a responsive society.

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    Toward A Practical and Operational Theory of The Budget For Developing Countries

    Uploaded by

    ducanes
    75 views13 pages
    This document discusses theories and principles of budgeting for developing countries. It addresses the need to prioritize expenditures based on social values and the demands of different groups. Budgeting should balance present and future interests through techniques like feasibility studies and cost-benefit analysis. The document also outlines Lewis' principles for an economic theory of budgeting, including applying the basic economic test of comparing returns on alternative expenditures and using incremental analysis. Finally, it introduces Soberano's positive government budget theory focused on achieving societal balance, scientific policies, an abundant economy, and a responsive society.

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    TOWARD A PRACTICAL AND OPERATIONAL THEORY OF THE BUDGET FOR DEVELOPING COUNTRIES

    Original Title

    TOWARD A PRACTICAL AND OPERATIONAL THEORY OF THE BUDGET FOR DEVELOPING COUNTRIES

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    This document discusses theories and principles of budgeting for developing countries. It addresses the need to prioritize expenditures based on social values and the demands of different groups. Budgeting should balance present and future interests through techniques like feasibility studies and cost-benefit analysis. The document also outlines Lewis' principles for an economic theory of budgeting, including applying the basic economic test of comparing returns on alternative expenditures and using incremental analysis. Finally, it introduces Soberano's positive government budget theory focused on achieving societal balance, scientific policies, an abundant economy, and a responsive society.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views13 pages

    Toward A Practical and Operational Theory of The Budget For Developing Countries

    Uploaded by

    ducanes
    This document discusses theories and principles of budgeting for developing countries. It addresses the need to prioritize expenditures based on social values and the demands of different groups. Budgeting should balance present and future interests through techniques like feasibility studies and cost-benefit analysis. The document also outlines Lewis' principles for an economic theory of budgeting, including applying the basic economic test of comparing returns on alternative expenditures and using incremental analysis. Finally, it introduces Soberano's positive government budget theory focused on achieving societal balance, scientific policies, an abundant economy, and a responsive society.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 13

    TOWARD A PRACTICAL AND

    OPERATIONAL THEORY OF
    THE BUDGET FOR
    DEVELOPING COUNTRIES
    Whatever methods or criteria arrived at
    should provide an answer to “what norm
    of expenditure is consistent with the
    state of progress achieved at present by
    the society”
    If planning is to be "overall", it must devise
    techniques for balancing values within a
    framework that gives due regard to the
    diverse interests of the present and the
    future.
    in a developing country like the Philippines,
    the Appropriations Bill expresses a social
    consensus which sounds akin to the mystic
    doctrine of the "general will.“
    choices have to be made between the demands
    of the different groups and factors, aside from
    making the estimates of the relative political
    strength of contending groups that frequently
    enter into the decision.
    General Appropriations Act PD1177
    shall be presented in the form of budgetary programs and
    projects for each agency of the government, with the
    corresponding appropriations for each program and project,
    including statutory provisions of specific agency or general
    applicability. The General Appropriations Act shall contain an
    itemization of personal services which shall be prepared by
    the Secretary before enactment of the General
    Appropriations Act.
    Specifically, a number of questions may be asked in
    this respect, most significant of which are:
    • Who finally sets and decides on priorities?
    • What are the bases/criteria for the prioritization? To what extent and how
    do citizens participate in this area?
    • What techniques/tools are employed in the process or prioritization or
    selection? (e.g. feasibility study, cost/benefit Analysis, Cost/Effectiveness,
    etc.)
    • How is the social desirability/utility of the approved program/projects
    measured?
    • What happens if programs/projects which were deprioritized originally,
    turn out, by popular demand, to be programs which are really needed by
    the people? Will there be a reallocation of resources during the execution
    phase of an approved national government budget?
    Lewis contended that budget authorities could
    arrive at an economic theory of budgeting
    following these principles
    1. Since resources are scarce in relation to demands, the basic economic
    test which must be applied is that the return from every expenditure
    must be worth its cost in terms of sacrificed alternatives. Budget analysis,
    therefore, should be basically a comparison of the relative merits of
    alternative uses of funds.
    2. Incremental analysis (i.e. analysis of the additional values to be derived
    from an additional expenditure) is necessary because of the
    phenomenon of diminishing utility. Analysis of the increments is
    necessary and useful only at,or near the margin; this is the point of
    balance at which an additional expenditure of any purpose would yield
    the same return.
    3. Comparison of relative merits can be made only in terms of relative
    effectiveness in achieving a common objective.
    Soberano budget theory
    A Positive Government - This is committed to actively
    formulate programs in fulfillment of societal balance
    necessary for the good life. It is a government that is
    established and sustained according to its performance
    in preserving the public interest (underscoring
    supplied) and dedication to the cause of public service.
    Scientific Policies - This is able to ascertain in popularly
    understood terms the requisites for the good life, the
    delimitations of the public interest, and the nature of the
    societal balances for which it is organized. These are policies
    which have operations and processes open to precise
    verification and validation in every significant aspect of
    performance, and whose ranks and positions are accessible
    and are open for popular, knowledgeable competition.
    An Abundant Economy - This assures everybody the optional
    level of welfare consistent with resources availability,
    technological progress, population policy, and ultimate human
    creativity. No artificial scarcities are imposed on account of
    doctrine other than the logical necessities governing production
    and civilized social living.
    A Responsive Society - This is directed towards the
    propagation of the common good, keen awareness of rights
    and entitlements amidst the possibilities of organized life. It is
    responsible for its performance according to the rules of
    civility and is knowledgeably prepared to reciprocate benefits
    received with services rendered.

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