The Types of Budgeting
According to the L. Smeby’s classification, there are two types of budgeting: the traditional and the zero-based budgeting. The traditional budgeting bases on an assumption that the budget of the previous year was justified and the “baseline” is automatically validated” (Smedy, 2014).
On the contrary, zero-based budgeting argues that the present budget could reflect real needs, and should be re-estimated every year. The idea is that every year agencies are fighting for getting funds that, in aftermath could not correspond with the real requirements in funding. This type of budgeting is usually applied, when tax revenues were low and the funding should be spreading according to these revenues. In this situation agencies implement adapting policies or are forced to make budget cuts. The future budgeting will be the traditional one, because of few reasons. The first one is economic growth that is predicted to be up to the 2017 (Fiscal year 2016. Analytical perspectives). That means that the crisis is not expected, so there is no necessity to cut the budget or invent any way to adapt to new challenges.
And the second reason is that the public safety and security is one of the priorities for the present government, so funding for the emergency service will not be decreased. This approach corresponds to the traditional budgeting, when the baseline is accepted as justified.
References
Smeby, L. C. (2014). Fire and emergency services administration: Management and leadership practices (2nd ed.).
Burlington, MA: Jones & Bartlett Learning. Fiscal year 2016. Analytical perspectives of the U.S. government. Retrieved 2 July 2015, from Download Full Essay Show full preview
