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Budgeting and Budgetary Institutions
Posted on 2010-04-12
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More Budgetary institutions and the budgetary process fulfill several important functions. These include setting priorities in the allocation of public resources; planning to achieve policy goals; establishing financial control over inputs to ensure compliance with rules; managing operations with fiscal prudence, efficiency, and integrity; and ensuring accountability to taxpayers. The effectiveness of budgetary institutions has been recognized in the economics and political science literature as contributing to improved fiscal and economic outcomes. In developing countries, especially in Africa, budgetary processes and institutions are not yet well enough developed to perform the above-mentioned functions adequately; instead, they provide work as means of legalistic controls. The reform of these institutions is critical to improving government performance in service delivery and to strengthening parliamentary and citizens¡¯ oversight on government operations.
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