Unit III Essay.docx PUA 5305 Unit III Essay Columbia Southern University Public Fina
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Unit III Essay.docx PUA 5305 Unit III Essay Columbia Southern University Public Finance and Budgeting PUA 5305 Budgeting and Budgeting Tools The delivery of public goods is funded by taxpayers. At the federal, state, and local level, funds are allocated through a budget. The budget determines how public resources will be used in the allocation of goods and services. Governments use a number of budgeting tools to decide funding levels. Some of the tools used in budgeting is incrementalism, performance, program, and zero based budgeting. Incremental budgeting is a budgeting process that is based on the notion that a new budget can be developed by making marginal changes to the current budget. With incremental budgeting, the current budget is used as a base to which incremental assumptions are added or subtracted from the base amounts to determine new budget amounts (Corporate Finance Institute, 2020).
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