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VARIOUS BUDGETARY MODELS :money_with_wings:, Definition - Coggle Diagram

- - - - Limit or ceiling imposed on an agency in the implementation of expenditure. The ceiling will be decided upon by both the Treasury and agency
      - Existing Policy
      - New Policy
      - One-Off
    - - The most vital element of MBS
        -An agreement between the Treasury and the agency on the desired performance on the part of the agency for a particular financial year.
        
        Agency / Programs should seek to achieve the targets sets in the programs agreement
    - - A report to be submitted by the agency / programs in the event that targets set in the programs agreement are not achieved.
        
        Reasons should be given as to why targets were not achieved. Thus, they must ask for exemption from having to comply by agreement. (Clarify why unable to achieve the target)
    - - An evaluation of the programs to determine the extent to which targets have been achieved
        
        A schedule of programs to be evaluated and the issues to be addressed must be included in the Programs Agreement.
        
        Each program should be evaluated once in 5 year
  - - - Improve identification of priority expenditure in budget submission
        
        Reduce paperwork in the preparation of budget submissions and in the conduct of budget examination
        
        Allow more time to discuss new policy proposal and its modification
    - - To improve motivation among line managers through increasing awareness and understanding of top management priorities through programs agreement
        
        Greater flexibility in the deployment of resources within aggregate constraints
        
        To enable the financial plans regarding input, output and impact to be used as a management tool
    - - Increase the department’s opportunity to use strategic planning as the basis for budget preparation
        
        Enable controlling officer to play a more active role in budgeting and to use it as a management device
        
        Enable more top-down approach to budgeting