Annual Budget Process Research Articles

Sustainable agriculture impacts in urban settings make the case for federal investments [Policy brief

Urban agriculture has flourished in American cities under the care of communities, but its growing popularity faces a number of challenges related to scant funding, insecure land tenure, and environ­mental pollution. Both local and national policy in the U.S. have struggled to adequately address those challenges and meet the demand for fresh food, local production spaces, and resilient communities. In this policy brief, we explore an emerging apparatus to support urban agriculture in the U.S. Department of Agriculture: The Office of Urban Agriculture and Innovative Production. We describe the relation­ship between urban agriculture’s many bene­fits and future funding, technical assistance, and data collec­tion initiatives through this office. Specifically, we call for consistent, permanent funding that is not subject to the annual federal budget process, which could power more tailored technical assistance programs, reformed granting initiatives, and expanded data collec­tion to inform future policy and practice. Urban agriculture has the potential to transform communities and the future of farming, and federal policy has the potential to provide important support for this transforma­tion. The policies outlined here offer a roadmap for this support.

Spending reviews’ capacity-building initiatives: Reflections on the experience and methodologies employed

ABSTRACT This study aims to reflect on the spending reviews’ capacity-building initiatives undertaken over the years, the experience and methodology employed. It discusses the feedback collected from survey questionnaires developed during and upon completion of each spending review capacity-building initiative and shares a case study of a completed and actioned spending review. The paper details the contribution of spending review training in building capacity of officials working in National and Provincial Treasuries in South Africa. It is argued that the spending review capacity-building initiatives contributed to the adoption of spending reviews as part of the annual budget process, culminating into the issuing of a government-wide guideline to use it as a tool in budgeting processes from 2021. This research not only contributes to the body of work on knowledge-transfer theory, but also offers lessons learnt in undertaking capacity building for public sector officials to promote knowledge transfer.

Moving beyond the ‘budget dance’

The annual budgeting process is a valuable opportunity for districts to systematically examine both resource use and programming. They can then use the findings to optimize resource use and improve program efficacy in ways that will lead to increased student achievement. Bo Yan and Thomas Aberli discuss three root causes for districts’ inability to accomplish the goals (reliance on problem-driven needs as the dominant factor of budgetary decisions, disconnect between financial management and performance management, as well as human nature). They propose a cycle-based approach to district budgeting that rests on differentiating investment from operation expenditures.

Health managers' perspectives of community health committees' participation in the annual health sector planning and budgeting process in a devolved unit in Kenya: a cross-sectional study

Health managers' perspectives of community health committees' participation in the annual health sector planning and budgeting process in a devolved unit in Kenya: a cross-sectional study

Integrating climate change and regulating budget processes in Georgia

An important priority for managing finances at the state level in Georgia is the mid-term and annual budgetary process and the gradual integration of the negative consequences caused by climate change in this process. Perfection of state finance management harmonized with international standards is an integral part of the budget system and is an opportunity to connect the goal of climate change and sustainable development. Today, economically developed countries and Georgia are well aware that one of the key directions in assessing the country's fiscal risks is the assessment of risks related to climate change and the possibility of potential consequences and losses arising from it, and their consideration in budgetary processes. Also the importance of climate change mitigation and adaptation costs, which in turn represents a step forward towards the goal of sustainable development. The paper analyzes the step-by-step approach of integrating climate change into the medium-term and annual budgeting process in Georgia, finding the necessary tools and means to update the action plans and budget programs related to climate change in the budgetary processes, which is still a challenge, remains open and has not yet been established as a final result.

Knowledge and Attitude of Health Managers Towards the Annual Health Sector Planning and Budgeting Process in Bungoma County, Kenya

The focus of health planning and budgeting is to identify priorities that, in turn, guide budgetary allocations aimed at improving health outcomes. The shift towards decentralization has necessitated reforms in the planning and budgeting processes. These reforms encompass the enactment of legislation, the formulation of process guidelines, and the utilization of program-based budgeting (PBB). Despite the institutionalization of these reforms, healthcare administrators continue to encounter the challenge of insufficient technical capacity and motivation, which hinders their effective participation in the process. Therefore, this study aimed to examine the knowledge and attitudes of health managers toward the annual health sector planning and budgeting process. A descriptive cross-sectional study design was employed, utilizing both quantitative and qualitative methods. Quantitative data were collected from 170 health managers drawn from all levels of the county health system, while qualitative data were collected from 3 county health executives. Quantitative data were analyzed using the Statistical Package for the Social Sciences (SPSS v. 29.0), while qualitative data were thematically analyzed. Fifty-eight percent of the health managers had not received training on the annual planning process, and 81% had not been trained on PBB. Only 41% were oriented on MoH planning guidelines and 40.5% on legal frameworks. Just 42% of health managers were knowledgeable about the planning and budgeting process. Chi-square tests indicated a significant association between training and the knowledge level of health managers, χ2 (1, N = 170) = 94.76, p < 0.001, as well as between the knowledge level and the use of legal frameworks, χ2 (1, N = 170) = 53.67, p < 0.001. Trained health managers displayed higher knowledge and utilization of legal frameworks. Although 93% of health managers acknowledged the process is essential for their units, only 40% affirmed their motivation to participate, and 78% disagreed with having a positive attitude toward the process. Top of Form To enhance the knowledge and attitude of health managers towards planning and budgeting, the county health department should allocate funds for training in the annual planning and budgeting process—including PBB. Additionally, the county health department should implement comprehensive orientation programs for health managers, encompassing the Ministry of Health's planning and budgeting guidelines along with the relevant legal frameworks.

Health Managers’ Utilization of Evidence to Inform Annual Health Sector Planning and Budgeting Process in Bungoma County, Kenya

Evidence-based planning and budgeting within the health sector are essential in strengthening the health system building blocks. Decentralization has presented opportunities for collecting local and reliable data to facilitate evidence-based planning and budgeting. Despite the increasing availability of routine health information at all levels of the health system, its effective utilization among health managers in lower and middle-income countries remains inadequate. This study, therefore, aimed to assess the health managers’ utilization of evidence to inform the annual planning and budgeting process. The study utilized a descriptive cross-sectional design, incorporating quantitative and qualitative research methods. Quantitative data were collected from 170 health managers, while qualitative data were gathered from three county department of health executives and 83 community health committee members across eight functional community health units. Statistical Package for the Social Sciences (SPSS v. 29.0) was employed for analyzing the quantitative data, while thematic analysis was used for the qualitative data. Only 42.4% of health managers received training in planning, budgeting, and annual performance reviews (APRs). Among the 45.9% who conduct APRs, only 47.4% use the findings to inform the process. A significant association was found between training and conducting of APRs, χ2 (1, N = 170) = 21.73, p < .001, and between training and the utilization of APR findings in decision-making, χ2 (1, N = 78) = 14.72, p < .001. Although 75% of health managers acknowledged the availability of health information, 71% disagreed that they have skills in data use for planning and budgeting and 54% disagreed regarding the reliability of the available data. The health managers who were trained in health sector planning, budgeting, and APRs were more likely to use findings to inform the process. To improve evidence-based planning and budgeting, the county health department should allocate additional funding towards conducting APRs as a critical first step in guiding the identification of priorities. Additionally, there is a need to implement capacity-building initiatives targeting health managers across all tiers of the county health system, focusing on data management and its effective utilization in planning and budgeting.

Healthcare budgeting for cyclicality: Structured literature review of accounting, public administration and ­­­health management

IMPACT This article warns that cyclical stocks are affecting the delivery of routine healthcare services. Planning fails when a shock occurs and policy-makers and managers need to adapt to budgetary over-estimation. To ensure a sustainable level of services at all stages of the economic cycle, cyclical impact should be systematically determined. This would improve decision-making and help minimize institutional and political impediments. However, developing these capabilities is difficult, requiring a multi-year perspective to be incorporated into the annual budgeting process. An important prerequisite to do this is for stakeholders to understand the impact that cyclicality has on healthcare

Why Change? Exploring the Antecedents of Southern African Evolutions in Legislative Budgeting

Abstract Recent evidence suggests that a small number of anglophone legislatures in Southern Africa are enhancing their engagement in the expenditure side of the annual budget process, particularly in the formulation phase. But why change, when these legislatures could simply stay the same? This study tests four possible explanations for this surprising trend, applying unique data collected in 2016/2017, complemented by publicly available, cross-national, historical records. The preliminary results indicate that leading political, legal, and technical explanations are unable to fully account for the changes that are underway. Instead, evidence suggests that a process of international socialisation, potentially precipitated by US-based legislative assistance programmes at a critical time, may have planted the seeds that pushed these developments along. This study encourages further exploration of the ways in which a quintessentially national institution is shaped internationally, and contributes to our understanding of why legislatures in similar developmental contexts might evolve.

Beyond stereotypes: the evolution of five Southern African legislatures in the budget process

ABSTRACT The prospect that legislatures in Southern Africa would be strengthening their engagement in the annual budget process is considered far-fetched. Owing to their Westminster heritage and periods of authoritarian rule, these parliaments are typecast as weak and uninterested in serving as an institutional check on executive authority. Yet, preliminary signals suggest that a transformation may be underway. This study employs primary data collected from the Parliaments of Lesotho, Malawi, Namibia, Zambia, and Zimbabwe in 2016/2017. Results support the hypothesis that these anglophone African legislatures are becoming more involved in the budget process, particularly at the ex-ante phase, though to varying degrees and with continued challenges. Evidence also suggests progress past certain features of the UK-inherited budget system, despite enduring institutional constraints. This study takes us beyond stereotypes that limit the potential of these institutions to their historical scaffolding and contributes to our understanding of their evolution.

BUSINESS DRIVERS AND ROLLING FORECAST A QUALITATIVE APPROACH

Fixed annual budgets can be cumbersome and inflexible, which often fails to deliver the intended benefits. The annual budget is often disconnected from business operations and strategic goals. It suffers from inherent weaknesses due to a lack of business intelligence about its assumptions. This flaw is well-documented in the literature. There are many options for better corporate financial planning. Business intelligence is an essential component of the annual budget process. Rolling forecasts are also a crucial tool. Business intelligence-based, driver-based rolling prediction can help align an organization's budget process and strategic objectives. It can also increase the financial and operational strength of an organization and maximize shareholder value. This article will provide a detailed overview of the traditional annual budget process. It will also discuss how an approach based on financial forecasts based on business intelligence drivers can help align operations with strategic goals and add value to organizations. An assessment of intelligence-supported, driver-based rolling forecasting will also be presented, demonstrating an im- proven approach to the traditional annual budgeting process.

Medium Term Expenditure Framework (MTEF): A Panacea for Public Expenditure Management (PEM) In Nigeria?

This paper investigated the outcome of the adoption and implementation of Medium-term Expenditure Framework (MTEF) in the Nigeria budgeting process. MTEF is eulogized by the World Bank, and even donor organization DFR as the panacea to the poor public expenditure management (PEM) prevalent in most of sub – Sahara African Countries. MTEF was first adopted in Nigeria, following the passage of the Fiscal Responsibility Act 2007 Act 30 to guide her national annual budgeting process. Using simply statistical methods, we collated data from sixteen national budgets (2003 - 2016), and constructed statistical tables to investigate the MTEF in the Nigeria annual budgets. Using correlation coefficient, we examined the behaviour of three key fiscal and expenditure items in Nigeria annual budgets.Our findings showed strong positive correlation between the budgeted and actual figures in all three fiscal items. Oil production was negatively corrected with the actual. We concluded, following our findings that the adoption and implementation of MTEF has to a large degree improved fiscal discipline in the Nigeria budgeting process.

Financial Management Practices and Performance of Small and Medium Scale Poultry Industry in Ogun State, Nigeria

Small and Medium-Sized Enterprises (SMEs) and the Agricultural sector is a combination that constitute a recognisable driving force for the development of an economy and the contribution of this sector cannot in any way be over-looked by any developing country particularly one that is struggling to diversify from petrol-carbon revenue and generate employment. The efficiency or otherwise of applicable financial management practices combined with the peculiarity and uncertainty of the business environment can make or mar the success of such SMEs operating in the poultry industry and this is the focus of this study. The study employed survey design. The study population comprised Poultry farmers in 162 farms as registered with the Poultry Association of Nigeria-Ogun State Chapter with the total of 200 farm managers, excluding farm attendants and other non-managerial staff. The Cochran formula was used to obtain a sample size of 150. The owners/managers of these Poultry farms were selected through a multi-stage sampling technique which involves the stratified, proportionate, and simple random sampling method. The instrument validity was established through scrutiny and evaluation by the research supervisors and experts in the study area, and reliability was determined via Cronbach’s alpha coefficient computed from pilot study responses. By the use of instrument codes, responses were processed into quantitative data for descriptive and empirical analysis. The analysis revealed that all proxies of financial management practices such as annual budget process, capital structure management and working capital management have a significant positive effect on profitability of poultry industry (Adjusted <i>R²</i>= 0.258, <i>F-statistics</i> = 9.407.: <i>p</i>= 0.000<0.05). Thus, the study concluded that financial management practices proxies, of profitability, cash solvency and economic value added, has a significant positive effect on the performance of poultry industry in Ogun State, Nigeria.

Handelsbanken: A radical business model transforms a conservative bank

In 46 of the last 47 years, Sweden's Handelsbanken has met its corporate goal of achieving a higher return on equity than peer banks and weathered worldwide financial crises largely unscathed. Its success can be attributed to an organizational model that replaced traditional top‐down, centralized management guided by an annual budget with decentralized operations that gave decision‐making authority to frontline branch employees with intimate knowledge of customers’ preferences. The new system also abolished the annual budget process and allowed managers to make resource requests as needed. Corporate goals were simplified, branch performance measures were tied directly to the new targets, and a profit‐sharing plan was designed to treat all employees equally. The benefits that the bank reaped from this radical approach prompted other organizations to follow its lead and continue to inspire replication of the beyond budgeting concept.

Medium-Term Budget Frameworks in Sub-Saharan African Countries

More than 15 years ago, many countries in sub-Saharan Africa embarked on a program of budgetary reform, an important element of which was a medium-term budget framework (MTBF). This working paper focuses on the performance of these frameworks in six countries–– Kenya, Namibia, South Africa, Tanzania, Uganda, and Zambia. It assesses the effectiveness of MTBFs in achieving improved fiscal discipline, resource allocation, and certainty of funding, as well as wider economic and social criteria such as poverty reduction and more efficient public investment. In most countries, early successes were not sustained, and budgetary outcomes did not improve, partly for technical reasons, such as poor data and inadequate forecasting methodologies, but also because the reforms were largely supply driven. The paper argues that the development of MTBFs typically falls into four distinct phases. To make the transition from one phase to the next, developing countries should focus on building their capability in macrofiscal forecasting and analysis, and in improving the credibility of the annual budget process.

Medium-Term Budget Frameworks in Sub-Saharan African Countries

More than 15 years ago, many countries in sub-Saharan Africa embarked on a program of budgetary reform, an important element of which was a medium-term budget framework (MTBF). This working paper focuses on the performance of these frameworks in six countries–– Kenya, Namibia, South Africa, Tanzania, Uganda, and Zambia. It assesses the effectiveness of MTBFs in achieving improved fiscal discipline, resource allocation, and certainty of funding, as well as wider economic and social criteria such as poverty reduction and more efficient public investment. In most countries, early successes were not sustained, and budgetary outcomes did not improve, partly for technical reasons, such as poor data and inadequate forecasting methodologies, but also because the reforms were largely supply driven. The paper argues that the development of MTBFs typically falls into four distinct phases. To make the transition from one phase to the next, developing countries should focus on building their capability in macrofiscal forecasting and analysis, and in improving the credibility of the annual budget process.

Patient-Centered Outcomes Research: Early Evidence From A Burgeoning Field.

Patient-Centered Outcomes Research: Early Evidence From A Burgeoning Field.

Neurology Advocacy 2.0: After Sustainable Growth Rate Repeal.

Neurology Advocacy 2.0: After Sustainable Growth Rate Repeal.

America's Local Governments: Their Annual Budget Process

America's Local Governments: Their Annual Budget Process

Responding to traveling patients' seasonal demand for health care services.

The Veterans Health Administration (VHA) provides care to over 8 million Veterans and operates over 1,700 sites of care across 21 regional networks in the United States. Health care providers within VHA report large seasonal variation in the demand for services, especially in the southern United States because of arrival of "snowbirds" during the winter. Because resource allocation activities are primarily carried out through an annual budgeting process, the seasonal load imposed by "traveling Veterans"-Veterans that seek care at VHA sites outside of their home network-make providing high-quality services more challenging. This work constitutes the first major effort within VHA to understand the impact of traveling Veterans. We discovered strong seasonal fluctuations in demand at a clinic located in the southeastern United States and developed a seasonal autoregressive integrated moving average model to help the clinic forecast demand for its services with significantly less error than historical averaging. Monte Carlo simulation of the clinic revealed that physicians are overutilized, suggesting the need to re-evaluate how the clinic is currently staffed. More broadly, this study demonstrates how operations management methods can assist operational decision making at other clinics and medical centers both within and outside VHA.