Question

Explain the following:

Planning and programme budget

Write a detailed note on planning programme budget.

Answer 1

A planning and programme budget is a method of budgeting that focuses on planning and controlling the budget based on specific programmes or activities that a government or organization intends to undertake. Unlike traditional line-item budgets, which mainly focus on inputs and costs, programme budgeting outlines the objectives, activities, and expected outputs or results as well as the costs associated with each programme.

Key aspects of a planning and programme budget include:

1. It links policy and planning with budgeting by setting specific goals and objectives for programmes.
2. Budgets are organized by programmes or projects, making it clear what each unit is responsible for achieving.
3. The budget facilitates decision-making by evaluating alternative programmes and prioritizing them for resource allocation.
4. It aids in the evaluation of expenditure effectiveness by linking costs to programme outcomes.