Expenditure Projections Research Articles

Cooperative Program for Resources Engineering Between Kyushu University and Hokkaido University

Joint Program for Sustainable Resources Engineering was adopted as a Special Expenditure Project by the Ministry of Education, Culture, Sports, Science and Technology in Japan. In this project, in order to cultivate human resources who can contribute to Japan’s resource strategies, Education and Research Departments of Resources Engineering at Kyushu University and Hokkaido University aim to jointly establish a new collaborative education program in 2017. This is the first of its kind in the resources engineering area among universities in Japan. One of the pillar of this program is “International Field Practice”. For working actively and globally in the field of sustainable resources engineering, one need to (1) acquire internationally accepted knowledge and techniques in the fields, (2) be capable of utilizing the knowledge and techniques practically, and (3) understand cultures in foreign countries as well as global trends in the field. In this exercise, students work on an internship or conduct a field research in a foreign country in the field of sustainable resources engineering. Through this exercise, students learn how to develop their leadership and adaptability in the world, and to communicate scientifically and technically in English presentation, discussion, and writing. This paper describes the overview of this program and the International Filed Exercise 2017 conducted in Czech Republic.

Economic Impact of Energy Consumption Change Caused by Global Warming

This paper tests the hypothesis that global warming would be detrimental to the global economy this century. It compares empirical data of energy expenditure and average temperatures of the US states and census divisions against projections using the FUND [1] energy impact functions holding time-dependent parameters, except temperature, constant at 2010 values. It finds that energy expenditure reduces as temperatures increase. This suggests that global warming, by itself, would reduce, not increase, US energy expenditure and so would have a positive, not a negative, impact on US economic growth. Next, these findings are compared against FUND energy expenditure projections for the world for the 21st century. The findings suggest that warming, by itself, would also reduce global energy expenditure. If these findings are correct, and if FUND projections of the non-energy impact sectors are valid, warming would benefit the global economy up to around 4˚ C increase in average global temperature from 1900. If this is true, the hypothesis is false. In this case, greenhouse gas mitigation policies are detrimental to the global economy. The analysis and conclusions warrant further investigation. We recommend the FUND energy impact functions be modified and recalibrated against empirical data.

Analysis on the Roles of the Chinese Government in the Cultural Creative Industry Based on Public Expenditure Policies

The Report at the 18th CPC National Congress explicitly incorporated “cultural soft power” into the important goal of complete the building of a moderately prosperous society in all respects, and one of the important ways to improve “cultural soft power” is to accelerate the development of the culture industry. In recent years, the cultural creative industry has won increasing attention from the Chinese Government by virtue of its specific advantages of promoting economic growth, increasing employment and so on, and becomes an emerging key-developing industry. The paper, mainly based the ten steps of public expenditure projects in the expenditure policy theory, analyzes the current roles of and influences from the Chinese Government on the cultural creative industry, explores the main functions and positioning of governments in the field, and then puts forward corresponding policy suggestions for helping local governments in China better plan and develop their local cultural creative industry.

Potential Issues and Costs Associated with Verifying CO2 Storage During and After CO2-EOR

Numerous legal and regulatory frameworks in the U.S. and globally are acknowledging the opportunity for greenhouse gas (GHG) reductions provided by combining the long-term storage of CO2 in association with carbon dioxide enhanced oil recovery (CO2-EOR), or in implementing a CO2 storage project after completion of CO2-EOR operations. These include the U.S. Environmental Protection Agency (EPA), the International Organization for Standardization (ISO), the State of California, and the Intergovernmental Panel on Climate Change (IPCC), among many.One objective of this paper is to characterize the potential issues and estimated costs associated with adapting a CO2-EOR project to enable it to get “credit” for stored CO2, as well as for converting a CO2-EOR project to a “pure” CO2 storage project. Several scenarios are considered in terms of the acceptable activities that a CO2-EOR operator would need to pursue to get “credit” for stored CO2, as well as for what would be required for converting a CO2-EOR project to a CO2 storage project. These potential scenarios are applied to several fields currently undergoing CO2-EOR operations to approximate a “real world” assessment of the potential implementation of this strategy.Two facilities were assumed for this assessment, based on representative CO2-EOR projects in the Permian Basin of West Texas and Gulf Coast of the U.S. For each, two regulatory scenarios were considered for verifying and documenting CO2 storage – a Reference Case and a Stringent Case.For the cases assuming CO2 storage with CO2-EOR, only the incremental costs associated with verifying and documenting CO2 storage are considered. Twenty years of injection are assumed, with 73 million metric tons of injected and stored CO2 assumed for the Permian Basin case, and 27 million metric tons assumed for the Gulf Coast case. A ten-year post-injection site care (PISC) period is assumed. Total project expenditures for verifying/documenting CO2 storage, on the basis of total expenditures (undiscounted) per metric ton of stored CO2, equate to $1.64/metric ton in the Reference Case, and $4.18/metric ton for the Stringent Case.For the cases assuming CO2 storage after CO2-EOR, it is important to keep in mind that MRV costs represent only a portion of overall storage costs. In most cases, a large portion (in fact, the majority) of the costs associated with CO2 storage project in a converted CO2-EOR project are those associated with operating the wells, equipment, and surface facilities. For this scenario, in the Reference Case, a 10-year PISC phase is assumed, while in the Stringent Case, a 50-year PISC period is assumed.For the Permian Basin case, total project expenditures for CO2 storage after CO2-EOR $9.02/metric ton in the Reference Case, and $21.13/metric ton for the Stringent Case. For the Gulf Coast setting, total project expenditures for CO2 storage after CO2-EOR are $5.21/metric ton in the Reference Case and $12.09/metric ton for the Stringent Case.Finally, potential conflicts between USEPA requirements and state-level mineral property, resource conservation, and environmental law in the United States remain a concern, and will need to be addressed.

Research on Optimization of the Performance Evaluation System of Fiscal Expenditure in Colleges and Universities

With the rapid development of higher education in our country, China is increasing its financial investment in colleges and universities, and the amount of funds for fiscal expenditure projects in colleges and universities is increasing. The performance evaluation of the fiscal expenditure project is an important management way and effective means to ensure the rational use of these special funds and optimize the allocation of the funds. This paper elaborates the necessity of performance evaluation of fiscal expenditure project in colleges and universities in China. On the basis of analyzing the present situation of performance evaluation of fiscal expenditure project in colleges and universities in China, this paper puts forward some suggestions and improvement measures to optimize the performance evaluation index system of university fiscal expenditure.

National trends in prescription drug expenditures and projections for 2017.

Historical trends and factors likely to influence future pharmaceutical expenditures are discussed, and projections are made for drug spending in 2017 in nonfederal hospitals, clinics, and overall (all sectors). Drug expenditure data through calendar year 2016 were obtained from the QuintilesIMS National Sales Perspectives database and analyzed. Other factors that may influence drug spending in hospitals and clinics in 2017, including new drug approvals and patent expirations, were also reviewed. Expenditure projections for 2017 for nonfederal hospitals, clinics, and overall (all sectors) were made based on a combination of quantitative analyses and expert opinion. Total U.S. prescription sales in the 2016 calendar year were $448.2 billion, a 5.8% increase compared with 2015. More than half of the increase resulted from price hikes of existing drugs. Adalimumab was the top drug overall in 2016 expenditures ($13.6 billion); in clinics and nonfederal hospitals, infliximab was the top drug. Prescription expenditures in clinics and nonfederal hospitals totaled $63.7 billion (an 11.9% increase from 2015) and $34.5 billion (a 3.3% increase from 2015), respectively. In nonfederal hospitals and clinics, growth in spending was driven primarily by price increases of existing drugs and increased volume, respectively. We project a 6.0-8.0% increase in total drug expenditures across all settings, an 11.0-13.0% increase in clinics, and a 3.0-5.0% increase in hospital drug spending in 2017. Health-system pharmacy leaders should carefully examine their own local drug utilization patterns to determine their own organization's anticipated spending in 2017.

The socio-economic impact of conservation: the Safe Islands for Seabirds LIFE project

AbstractUsing the Safe Islands for Seabirds LIFE project as a case study, we assessed the socio-economic impact of a nature conservation project on the local community, focusing on the wealth created and the jobs supported directly and indirectly by the project. The Safe Islands for Seabirds project took place during 2009–2012, mainly on Corvo Island, the smallest and least populated island of Portugal's Azores Archipelago. To assess the impact of the project we used a combination of methods to analyse the project expenditure, the jobs created directly as a result of it, and, by means of multipliers, the incomes and jobs it supported indirectly. We estimate that during 2009–2012 direct expenditure of EUR 344,212.50 from the project increased the gross domestic product of the Azorean region by EUR 206,527.50. Apart from the 4.5 jobs created directly by the project, it also supported indirectly the equivalent of 1.5–2.5 full-time jobs. The project also provided the opportunity to preserve and promote natural amenities important for the quality of life of the local community. Our findings show that a nature conservation project can have positive economic impacts, and we recommend the creation of a standardized tool to calculate in a straightforward but accurate manner the socio-economic impacts of conservation projects. We also highlight the need to design projects that support local economies.

인구구조의 변화를 반영한 건강보험 진료비 추계

Purpose: This study was conducted to suggest a method for financial projection of health insurance expenditures that reflects future changes in demographic structure. Methods: Using data associated with the number of patients and health insurance cost per patient, generalized linear models (GLM) were fitted with demographic explanatory variables. Models were constructed separately for individual medical departments, types of medical service, and types of public health insurance. Goodness-of-fit of most of the applied GLM models was quite satisfactory. By combining estimates of frequency and severity from the constructed models and results of the population projection, total annual health insurance expenditures were projected through year 2060. Results: Expenditures for medical departments associated with diseases that are more frequent in elderly peoples are expected to increase steeply, leading to considerable increases in overall health insurance expenditures. The suggested method can contribute to improvement of the accuracy of financial projection. Conclusion: The overall demands for medical service, medical personnel, and relevant facilities in the future are expected to increase as the proportion of elderly people increases. Application of a more reasonable estimation method reflecting changes in demographic structure will help develop health policies relevant to above mentioned resources.

Counting the time lived, the time left or illness? Age, proximity to death, morbidity and prescribing expenditures

The objective is to understand what really drives prescription expenditure at the end of life in order to inform future expenditure projections and service planning. To achieve this objective an empirical analysis of public medication expenditure on the older population (individuals ≥ 70 years of age) in Ireland (n = 231,780) was undertaken. A two part model is used to analysis the individual effects of age, proximity to death (PTD) and morbidity using individual patient-level data from administrative pharmacy records for 2006–2009 covering the population of community medication users. Decedents (n = 14,084) consistently use more medications and incur larger expenditures than similar survivors, especially in the last 6 months of life. The data show a positive and statistically significant impact of PTD on prescribing expenditures with minimal effect for age alone even accounting for patient morbidities. Nevertheless improved measures of morbidity are required to fully test the hypothesis that age and PTD are proxies for morbidity. The evidence presented refutes age as a driver of prescription expenditure and highlights the importance of accounting for mortality in future expenditure projections.

National Health Expenditure Projections, 2016-25: Price Increases, Aging Push Sector To 20Percent Of Economy.

Under current law, national health expenditures are projected to grow at an average annual rate of 5.6percent for 2016-25 and represent 19.9percent of gross domestic product by 2025. For 2016, national health expenditure growth is anticipated to have slowed 1.1 percentage points to 4.8percent, as a result of slower Medicaid and prescription drug spending growth. For the rest of the projection period, faster projected growth in medical prices is partly offset by slower projected growth in the use and intensity of medical goods and services, relative to that observed in 2014-16 associated with the Affordable Care Act coverage expansions. The insured share of the population is projected to increase from 90.9percent in 2015 to 91.5percent by 2025.

Our focus needs more focus: aligning project risks and expenditure for better environmental outcomes

Project environmental management is becoming increasingly complex and costly. Is the environment best served? Does the community get value? Does the shareholder get value? Will project legacy be land that is stable, uncontaminated, rehabilitated and suitable for future use? Environmental outcomes and effectiveness will continue to suffer while our focus and scrutiny during the project life cycle is misaligned. The community, government and environmental groups fixate on assessment, approval and conditioning within a maze of requirements (federal, state and local). But are key environmental issues addressed as effectively as possible? How do we prevent short-term administrative urgency and ‘green-tape’ detracting from taking on-ground action to address long-term impacts and liabilities? This paper explores how better environmental outcomes and greater effectiveness can be achieved with better planning of project expenditure using current tools, by following a more disciplined approach to (i) employ an objective and transparent approach to risk, leading to achievable compliance requirements; (ii) systematically focus on short- and long-term risks using independent inputs; (iii) prioritise timely on-ground actions; and (iv) regularly review and align effort with risk. The challenges and benefits of such an approach are discussed in relation to three time-consuming environmental activities that span project lifecycle: negotiating regulation, offsetting biodiversity impacts and rehabilitating disturbed areas.

Evolution of Tax Purpose and the Relevance of Property Right Institution for Taxation on Forest

In the year of 2015, China as a country whose total forest area ranked the 5th in the world and whose total forest area increased the most rapidly in the world during recent years, China’s forestry taxation is undoubtedly noteworthy. This paper studies the major changes in forest taxation purpose in varying phases including the period of transmitting from an agricultural country to an industrialized country, which could provide valuable reference to some developing countries who are still undergoing the transmission from an agricultural country to an industrial country. In ancient China, the major purpose of charging taxes on forests was to collect tax revenue; subsequent to the founding of the PRC but prior to its industrialization, the main purpose of forest taxation was to balance the land allocation between grain production and forestry production; in recent years of post-industrialization, in order to deal with the pollution caused by industrialization and urbanization, the major purpose of charging negative forestry tax, such as initiating some public expenditure projects in forestation and granting some fiscal subsidies to forestry are to make use of forest’s ecological function in environmental protection. This paper also provides reference to transitional economies which are experiencing the transformation from planned economy to market economy in the perspective of reforming their forest property right institutions and formulating forestry tax policies compatible with the complexity of varying forest property rights.

Public Inquiry and Fiscal Discipline ― An Assessment on Performance of the Preliminary Feasibility Study in Korea ―

예비타당성조사제도는 1999년 처음 도입된 이후 지속적으로 진화하여 이제는 대규모 재정지출이 수반되는 사회간접자본 건설에 대한 의사결정 과정에서 반드시 거쳐야 하는 사회적 제도로서 굳건하게 자리 잡았다. 본 연구에서는 공적조사 제도로서 예비타당성조사가 예산 관련 의사결정의 독립성과 객관성 확보에 어떤 영향을 주었는지를 점검하기 위하여 1999년부터 2013년까지 15년의 기간 동안 성과에 대한 정성적·정량적 평가를 시도하였다. 연구 대상 15년의 기간 동안 예비타당성조사 대상이 되었던 재정지출사업의 35%가 타당성이 없는 것으로 판정되어 예산배정이 거부되었는데 이는 약 102조원의 예산이 절감되었음을 의미한다. 더하여 예비타당성조사는 정치적 압력과 같은 외부적 위험 요인의 영향으로부터 예산관련 의사결정을 보호함으로써 재정규율의 확립에 기여하였던 것으로 평가된다. 특히 2008년 글로벌 금융위기 직후 경기 침체에 대응하기 위하여 적극적 재정팽창을 옹호하던 주장에 대응하여 타당성이 없는 사회간접자본에 대한 지출을 막음으로써 재정건전성 유지에 크게 기여하였던 것으로 나타났다. 더욱이 경제적 타당성이 다소 미흡함에도 불구하고 지역균형발전 등 제반 사회적 요인을 종합적으로 고려하여 사업의 전체적 타당성이 있다고 최종 결론을 내린 경우를 대상으로 한 분석에서 그러한 결정이 외부적 또는 정치적 요인에 영향을 받았다는 증거를 발견할 수 없었던 바, 이는 예비타당성제도가 상당히 독립적으로 운영되어 왔음을 시사한다.Since its introduction in 1999, the preliminary feasibility study (PFS) has been evolved to firmly establish itself as a social institution in Korea. It now serves the society as a focal point for public inquiry into budgetary expenditure programs on social overhead capital. We examine the performance of the PFS for the last 15 years focusing on its role as the bulwark of objective and independent budgetary decision makings. Thirty-five percent of large scale government expenditure projects evaluated by PFS were announced to be fiscally unjustifiable and abandoned. That is, more than 102 trillion KRW were saved due to rigorous screening by the PFS between 1999 and 2012, amounting to thirty-eight percent of total project costs of all projects examined by PFS during the same period. In addition, the PFS has contributed to enhancing fiscal discipline by insulating budgetary decision making process from external risk factors such as political pressure. The global financial crisis in 2008 provided a good opportunity for advocates of fiscal expansionism to extend their territory. Accordingly, both the number and total size of government expenditure projects proposed by the government ministries have been sharply increased. However, the PFS played an important role in keeping fiscal soundness by preventing inefficient or unnecessary project from being executed even in the face of unfavorable atmosphere prevailed during the turbulent times after the global financial crisis(JEL classification: H43, H54, H61).

Snakes and ladders: The development and multiple reconstructions of the Stockholm International Peace Research Institute’s military expenditure data

The Stockholm International Peace Research Institute’s military expenditure database is the only long-run, consistent dataset on military expenditure with global coverage. Even though SIPRI’s military expenditure data collection dates back almost to the organization’s beginning in 1966, until recently, consistent data series for most countries have only been available as from 1988 onward. As this article discusses, the history of SIPRI’s military expenditure project includes a number of breaks, the result of staff transitions and failures of record-keeping. As a result, reconstructing the data has been necessary on a number of occasions. The most recent such effort has now succeeded in extending the data backward from 1988 for the great majority of countries—in most cases at least to the 1960s, and for some countries as far back as 1959. This article sets out this history of advances, setbacks, and reconstructions and the methodologies used. In particular, the results of the latest reconstruction effort are presented, and thoughts for future developments laid out.

Do EU funds crowd out other public expenditures? Evidence on the additionality principle from the detailed Czech municipalities’ data

ABSTRACTEuropean Union (EU) funds flowing into budgets of public sector organizations of its member states should be additional to their nationally funded expenditures. To investigate this additionality principle systematically, we develop a new empirical method. Our main hypothesis is that some of the EU-funded projects are crowding out national public expenditures. Not being able to reject the hypothesis would be consistent with violating the additionality principle. To test the hypothesis, we examine how EU funding translates into actual spending of relatively comparable municipalities of the Czech Republic. We innovatively match the municipal authorities’ budgetary data on EU-funded expenditure projects with their other, nationally funded, expenditures. We find no systemic crowding out of national public expenditures by EU funds at the level of operational programmes in the Czech municipalities’ data, which is consistent with no evidence of violating the additionality principle. Nonetheless, going down to the municipal level enables us to show how the results can pinpoint individual cases of EU fund’s potential mismanagement in Czech municipalities. Overall, we provide the first evaluation of the additionality principle at the level of individual recipients of EU funds and in doing so we develop a methodological approach potentially applicable to other fund recipients.

India's Proposed Universal Health Coverage Policy: Evidence for Age Structure Transition Effect and Fiscal Sustainability.

India's High Level Expert Group on Universal Health Coverage in 2011 recommended a universal, public-funded and national health coverage policy. As a plausible forward-looking macroeconomic reform in the health sector, this policy proposal on universal health coverage (UHC) needs to be evaluated for age structure transition effect and fiscal sustainability to strengthen its current design and future implementation. Macroeconomic analyses of the long-term implications of age structure transition and fiscal sustainability on India's proposed UHC policy. A new measure of age-specific UHC is developed by combining the age profile of public and private health consumption expenditure by using the National Transfer Accounts methodology. Different projections of age-specific public health expenditure are calculated over the period 2005-2100 to account for the age structure transition effect. The projections include changes in: (1) levels of the expenditure as gross domestic product grows, (2) levels and shape of the expenditure as gross domestic product grows and expenditure converges to that of developed countries (or convergence scenario) based on the Lee-Carter model of forecasting mortality rates, and (3) levels of the expenditure as India moves toward a UHC policy. Fiscal sustainability under each health expenditure projection is determined by using the measures of generational imbalance and sustainability gap in the Generational Accounting methodology. Public health expenditure is marked by age specificities and the elderly population is costlier to support for their healthcare needs in the future. Given the discount and productivity growth rates, the proposed UHC is not fiscally sustainable under India's current fiscal policies except for the convergence scenario. However, if the income elasticity of public expenditure on social welfare and health expenditure is less than one, fiscal sustainability of the UHC policy is attainable in all scenarios of projected public health expenditures. These new results strengthen the proposed UHC policy by accounting for age structure transition effect and justifying its sustainability within the framework of India's current fiscal policies. The age structure transition effect is important to incorporate the age-specific cost and benefit of the proposed UHC policy, especially as India moves toward an ageing society. Fiscal sustainability is essential to ensure that the proposed UHC is implementable on a long-term basis and within the framework of current fiscal policies.

National Health Expenditure Projections, 2015-25: Economy, Prices, And Aging Expected To Shape Spending And Enrollment.

Health spending growth in the United States for 2015-25 is projected to average 5.8percent-1.3percentage points faster than growth in the gross domestic product-and to represent 20.1percent of the total economy by 2025. As the initial impacts associated with the Affordable Care Act's coverage expansions fade, growth in health spending is expected to be influenced by changes in economic growth, faster growth in medical prices, and population aging. Projected national health spending growth, though faster than observed in the recent history, is slower than in the two decades before the recent Great Recession, in part because of trends such as increasing cost sharing in private health insurance plans and various Medicare payment update provisions. In addition, the share of total health expenditures paid for by federal, state, and local governments is projected to increase to 47percent by 2025.

Understanding social security trends: an expenditure decomposition approach with application to Australia and Hong Kong

ABSTRACTThe social security system is a central feature of the social protection system in all countries. It provides support (generally in cash) for vulnerable groups and thus plays an important role in poverty alleviation and in income redistribution generally. In Western countries, social security expenditure accounts for a large proportion of total government social spending and continues to grow despite sustained efforts to control its growth through a variety of measures. Although social security systems are still maturing in most Asian countries, spending is growing rapidly there too, but with little apparent effect on poverty rates, raising concerns about financial sustainability and policy effectiveness. The expenditure decomposition framework was developed at the OECD in the 1970s and decomposes the growth in total expenditure into changes in three factors: external (demographic) pressures; the benefit coverage ratio; and benefit generosity (or payment adequacy). It can be used to better understand the relative importance of these factors in explaining past spending growth, to make future expenditure projections and to focus on what kinds of policy reforms are needed to keep future spending growth within prescribed limits. This paper applies the expenditure decomposition framework to examine past changes in spending on age and disability pensions in Australia, and in assistance for older people in Hong Kong. The findings illustrate the strengths and weaknesses of the approach and highlight some of the similarities and differences within and between the two countries.

National trends in prescription drug expenditures and projections for 2016.

Historical trends and factors likely to influence future pharmaceutical expenditures are discussed, and projections are made for drug spending in 2016 in nonfederal hospitals, clinics, and overall (all sectors). Drug expenditure data through calendar year 2015 were obtained from the IMS Health National Sales Perspectives database and analyzed. Other factors that may influence drug spending in hospitals and clinics in 2016, including new drug approvals and patent expirations, were also reviewed. Expenditure projections for 2016 were based on a combination of quantitative analyses and expert opinion. Total U.S. prescription sales in the 2015 calendar year were $419.4 billion, which was 11.7% higher than sales in 2014. Prescription expenditures in clinics and nonfederal hospitals totaled $56.7 billion (a 15.9% increase) and $33.6 billion (a 10.7% increase), respectively, in 2015. In nonfederal hospitals, growth in spending was driven primarily by increased prices for existing drugs. The hepatitis C combination drug ledipasvir-sofosbuvir was the top drug overall in terms of 2015 expenditures ($14.3 billion); in both clinics and nonfederal hospitals, infliximab was the top drug. Individual drugs with the greatest increases in expenditures in 2015 were specialty agents and older generics; these agents are likely to continue to influence total spending in 2016. We project an 11-13% increase in total drug expenditures overall in 2016, with a 15-17% increase in clinic spending and a 10-12% increase in hospital spending. Health-system pharmacy leaders should carefully examine local drug utilization patterns in projecting their own organization's drug spending in 2016.

Effect of Budgeting on Public Sector Wage Bill Management by the Government of Kenya

The main aim of budgeting by the government is to create plans on how to source, allocate and spend public resources prudently to meet allocation, development and stabilization objectives. All government expenditure should be controlled if both development and recurrent objectives are to be met. This is however not the case with the public sector wage bill in Kenya since it has been at a spiraling level in the recent past. The wage bill to GDP ratio was 12.1% in the year 2012/13 as compared to the internationally accepted level of 7%. The wage bill to revenue ratio was 47% in the year 2012/13 as compared to the internationally accepted levels of between 30% and 40%. The wage bill to expenditure ratio was 57% in the year 2012/13 as compared to the conventionally accepted levels of utmost 40%. This implies fiscal unsustainability of public expenditure. Public sector wage bill reforms like retrenchments, salary cuts and introduction of Salaries and Remuneration Commission to bring fiscal guidelines in wage Bill has not worked in managing the public sector wage bill in Kenya. This study aimed at assessing the effect of budgeting on public sector wage bill management in Kenya as another intervention in wage sanity. The study relied on Principal agent theory of budgeting, Top Down theory of budgeting, Bottom up theory of budgeting and incrementalism theory of budgeting which postulate that budgeting is a tool for control of expenditure. The specific objectives of the study were to establish whether the revenue forecast, recurrent expenditure budgetary projections, capital expenditure budgetary projections and expected growth in GDP have effects on public sector wage bill management. Causal research design was used to establish the cause and effect relationship between the independent and dependent variables. Purposive sampling was employed in selecting 13 fiscal year budget data. Step-wise multiple linear regression models were employed in establishing the degree and magnitude of the relationship between the variables. Student’s t-test and F-ratio were respectively applied to test hypotheses and overall significance of the regression models at 5% level of significance. The findings of this study indicates significant effect of revenue forecast, development expenditure projection and GDP on wage bill to revenue ratio and wage bill to GDP ratio and no significant effect on wage bill to recurrent expenditure ratio. It therefore implies a budget can be a control tool for expenditure. This study recommends the need for the government of Kenya to adopt program based budgeting system that factors output factor to control the wage bill.