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INST 275 – Administrative Processes in Government - page 20 / 34

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Budgeting Theory and Practice

A public budget has four basic dimensions:

A political instrument that allocates scarce public resources among the social and economic needs of a jurisdiction.

A budget is a managerial or administrative instrument.

It specifies the ways and means of providing public programs and services.

It establishes the costs of programs and the criteria by which these programs are evaluated for efficiency and effectiveness.

It ensures that programs will be reviewed or evaluated at least once during the budget year or budget cycle.

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