Public budgeting is the process of planning for financing a particular government or institution, it is a process that is done with a responsible individual and after completion is handed over to a different higher authority that will have to proof read and give consent for it to be implemented. It contains the sources of revenue, the expenses and the ways of filling up deficits if at all there is any. Below we look at some of the differences that are there in the budget making process between the public and private entities.
The public budgeting process and that of a private firm differ slightly but the difference is not that big. In the public budgeting process we see that the revenue estimation is the first step taken but in that of a private firm they first review their past programs and achievements. The public budget has to be put to public scrutiny and in the private one; the top leaders can decide to do what they want. This process of scrutiny of the public budget helps a lot because the public get to have their say in the budget making process, their views are also put into consideration hence helps in coming up with a perfect budget.
On a public budget Once the budget has been adopted and executed minimum changes can be made to it, but that of a private firm can be altered in consideration of current events. This is disadvantageous to the public as the budget has to work as it is without considering any calamities that may arise.
Generally the process of budget making between the two institutions is the same despite the few differences that have been cited above.
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