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Traditional / Incremental Budgeting (Characteristics (Incrementalism…
Traditional / Incremental Budgeting
Characteristics
Incrementalism
increase or decrease the amount of rupiah in pre-existing budget items
use previous year's data as a basis for adjusting the amount of addition or subtraction without an in-depth study.
line-item budgeting
not possible to eliminate revenue or expenditure items that are already in the budget structure.
Centralized
Specific
Annual
Using the principle of gross budget
Disadvantages
Inadequate relationship between annual budget and long-term development plans.
The incremental approach causes a large amount of expenditure to never be thoroughly investigated for its effectiveness.
More input oriented than output. This causes traditional budgeting not to be used as a tool for making policy and resource choices, or monitoring performance
Rigid boundaries between departments make overall national goals difficult to achieve.
Advantages
relatively easy, so it can help overcome the complexity of the budgeting process
Does not require too much knowledge to understand new activity programs, because many of these activities are a continuation of the activities of previous years,
dispute areas becomes narrow so that it can reduce the possibility of conflicts between units with an interest in the budget