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Handbook of Budgeting, 6th Edition by William R. Lalli

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CHAPTER THIRTY-TWO

Program Budgeting: Planning, Programming, Budgeting

William B. Iwaskow, MBA, JD

INTRODUCTION

As noted in the previous chapters, budgeting has evolved into a major integrating tool for planning and control. It can bridge the gap between strategic planning, long- and medium-range planning, and current actions. Without an adequate union, planning can be out of touch with the constraints of scarce resources, and budgeting can be divorced from the direction of plans and programs.

This chapter provides a broad, comprehensive approach to integrating planning and budgeting, called program budgeting (PB), which is another designation for planning, programming, and budgeting. This approach represents a significant stage in the continuing evolution of planning and budgetary techniques and the general technology of management decision making.

The PB integration is basically accomplished by the use of strategic output-oriented programs that are based on goals, purposes, and objectives. Providing output-oriented budget information with a long-range perspective to allocate resources more effectively in PB’s basic objective. The output-oriented program expenditures are later translated into traditional line-item appropriation budget requests. A budget based on PB concepts is a statement of policy for a planning period and a means for implementing it. Because of the output orientation of PB, designating it as “output budgeting,” the term used in the United Kingdom, might be ...

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