Budget Systems, Underlying Structures and Characteristics

  • Aman KhanEmail author


Budgets are prepared using a formal structure that ties the various elements of a budget into a coherent document. The structure provides the foundation of the budget and is based on a conceptual framework that guides its development, which, for convenience, we will call budget systems. Although terms such as “budget formats,” “budget approaches,” and “budget types” are often used, “budget systems” seem more appropriate because, like any system, budgets have a basic structure with interrelated components and funds allocated to the component units (agencies and departments) of a government are tied together in a coherent fashion to achieve the goals of the government. Understanding the systems and their structure is important to understand how budget decisions are made and the results those decisions have on individual agencies and departments, their functions, programs, and activities, as well as on the public, vis-a-vis society at large. Budgeting is also a management function, where the responsibility for managing the systems falls on the chief administrative officer, along with the central budget office and the budget director, the agency and department heads, all the way down to the unit managers. This chapter provides a brief discussion of the role the budget systems play in the overall budget process, followed by a detailed discussion of some of the systems commonly used in government.


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© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of Political ScienceTexas Tech UniversityLubbockUSA

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