Contrary to the budgets of businesses, a government budget is a “legal” document that is passed by a legislature. In light of recent developments in Washington DC, what do you think about the process employed on the federal level? Can you ever see business operating this way? What are the differences?
Here are a few comments about Governmental budgets that may help you to formulate your response: Government budgets have an economic, political and technical basis. Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. The technical element is the forecast of the likely levels of revenues and expenses.
