program budget

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July 13, 2026

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A government budget is a forecast of a government's expenditures and revenues for a specific period, typically a year, known as a fiscal year. Program budgeting is an approach that classifies expenditures by the outputs they support, rather than by traditional departmental structures. This method aims to apply economic principles of choice to public decision-making by evaluating alternative courses of action and their potential outcomes. Unlike traditional budgets that focus on inputs like salaries, program budgets emphasize the results or "outputs" of government activities, such as the number of children completing educational programs. This approach acknowledges the time dimension of programs, considering research, development, investment, and operating phases, and allows for flexibility and revision due to uncertainty.12

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government budget
Program budgeting and zero-base budgeting
Traditionally, government expenditures have been considered as inputs rather than outputs. This is because, in the classical 19th-century conception, the well-run government does not produce a marketable output. The program budget derives from this concept; it attempts, however, to classify…
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Traditionally, government expenditures have been considered as inputs rather than outputs. This is because, in the classical 19th-century conception, the well-run government does not produce a marketable output. The program budget derives from this concept; it attempts, however, to classify…
Read More