The paper "Public Budgeting and Ethics" is a good example of finance and accounting coursework. Public budgeting is the planning of how public resources will be used within a specified period of time; usually twelve months. It is a financial instrument used to control public financial resources (Catak & Cilingir, 2010). Public budgeting is normally composed of various disciples including economic, political, accountability and administrative (Norton & Elson 2002). Additionally, there are many formats of budgets including program, performance and line item budgets. Public budgeting can either be done at the state or federal level.
An important aspect of public budgeting is ethics. Ethics is defined as a set of morals, values and beliefs which are upheld in a specific society. There are various ethical issues which are associated with public budgeting (Menson, 2007). The following easy will give a deep insight into public budgeting after which ethical issues associated with it will be discussed. There are various disciplines or functions of public finance. The first discipline is the political disciple of public budgeting. This disciple gives central focus to the politics which influence spending (Menson, 2007).
The second function is the economic disciple which gives focus to the economic/ financial factors influencing the collection and spending of public resources. The third discipline is the accountability or control function of public budgeting which upholds various principles of business (Shulock, 2002). The fourth disciple of public budgeting is the administrative or material function where public budgeting is focused on public administration (Menson, 2007). On this, public budgeting is focused on ensuring that the public resources are administered appropriately. Lastly is the organizational function where the public is vied as an organization, hence requiring a budgeting control method aligned to organizational theories.
Ideally, public budgeting is focused on controlling the resources which are collected from private. This explains the reason as to why public budgeting is defined by Donald Kent as the decision about the number of the society’ s resources is to be taken from the private sector so as to be used to solve problems which are of public interest. There are various formats which are used to make budgets formats. The first format used to prepare budgets is the line format.
The line format emphasizes on total control of the public resources for use in public issues. The format has low regard for policy; hence the lack of clear policies. The public budgeting format is used in instances when the budgeting team wishes to reduce / possibly eliminate instances of conflict. The second public budgeting format is the program budget. This format has high regard for policy. Under this budgeting format, the governing body established and implements policies which govern the way in which public budget is to be done (Whitton, 2001).
The program budget format emphases on what the government should do with the collected resources. From this, the government initiates programs which are to be implemented using the collected resources. This budgeting format requires more analysis so as to come up with specific areas in the public domain which needs to be given. The last budgeting format used in public budgeting is the performance budget. This budget emphasizes on the management of the public funds. Under this management-oriented budgeting format, the governing body has focused on the productivity of definite tasks and not the overall goals of the public sector.
Generally, this format emphasizes on the administrative outcomes of budgeting (Catak & Cilingir, 2010).