Public Budgeting in Context

Chapter OneOverview of Modern Public Budgeting

Struggle and compromise are the very essence of the democratic process and are necessarily reflected in the budget.

—Harold D. Smith, director of the US Bureau of the Budget, 1944

LEARNING OBJECTIVES

After reading this chapter, you should be able to

• Define public budgets in several ways
• Distinguish between different types of public budgeting decisions
• Distinguish between public and private budgets
• Understand different perspectives about the role, growth, and size of government
• Compare several theoretical frameworks about public budgeting
• Conduct your own investigation of government size
• Distinguish budget principles applicable to the legislative and executive branches of government