lesson 7: Public Finance Flashcards
What is a budget?
A budget is a plan that outlines how an organization will allocate its resources to achieve its goals within a specific timeframe, typically one year
What are the three main functions of a budget in the public sector?
control, management, and planning
control
Maintaining sT and LT control of totals in budgets, fiscal numbers, and deficits, and total overall debt that the org is carrying
budgets are statement for …
gov expectations
previous budget used as a ___ for future budget decision
benchmark
What are the two main types of budgets?
revenue budgets and expenditure budgets
rev budgets are prepared by
Ministers of finance
When are revenue budgets typically presented in Canada?
typically presented as part of budget speeches delivered by Ministers of Finance in February or March
budget speeches
mix of self congratulation and high level overview of gov spending
budget speeches are presented to…
HOC
largest source of rev is
income tax
expenditure budgets
accounts for and authorizes anticipated program spending during the budget period.
expenditure budgets once approved it becomes ____ for that year
Appropriation act
treasury board is in charge of ….
spending
consolidated rev fund
Gov bank account at bank account
What are the two main types of program expenditures?
operating and capital expenditures
operating expenditures
Recurring expenditures salaries, wages, etc.
capital expenditures
Related to purchase and renewal of capital goods → bridges, roads, vehicles, buildings, lands,
What is the strategic planning/review phase in the budget process?
guides resource allocation decisions but operates on a longer timeframe than the annual budget.
reviews every 4 years
What conflicting roles exist during the budget preparation stage? spenders vs guardians
spender
- top down influence
guardians
- bottom up influence
- set directions
Appropriation Phase
budget must be approved by legislature
What is the role of the Auditor General in reviewing government spending?
as an independent “watchdog”
agent of parliament
reports publicly after the fact
