RESEARCH PAPER: TYPES OF BUDGETS ASSIGNMENT GUIDE

Keep in mind that the budget is noun; it is a financial plan. Budgeting is a verb; iut is a process. Your analysis should address the impact (effect) on the process, not the impact on the plan (budget).

Use the bolded statements as headings in your paper.

I. Executive Summary (Limit to a page or less).  It is not an introduction; it is a summary 

of the findings.  Write this section last.

An Executive Summary should:

• Summarize the impact of Line-Item Budgets, Program Budgets, and Performance Budgets on the budgetary process.

• Summarize the impact of the two selected constraints on the budgetary process.

II. Impacts of the Three Types of Budgets on the Budgetary Process

• Impact of Line-Item Budgets on the Budgetary Process.  Describe the impact(advantages/disadvantages) line-item budgeting has on the budgeting process.

• Impact of Program Budgets on the Budgetary Process.  Describe the impact (advantages/disadvantages) program budgeting has on the budgeting process.

• Impact of Performance Budgets on the Budgetary Process.  Describe the impact (advantages/disadvantages) performance budgeting has on the budgeting process.

III. Impact of Two Political and/or Economic Constraints on the Budgetary Process

Address in depth two of the following three constraints listed below.  

• Fiscal constraints.

• Economic constraints.

• Political constraints.

Be specific.  You must specify exactly which constraining factor you are analyzing.

Fiscal constraints include factors such as monetary policy, supply-side policy, and money supply.  If analyzing fiscal constraints, select one and analyze its impact on the budgetary process.

Economic constraints include wages, interest rates, inefficiencies within the micro-economy, a rapidly growing or declining population, lack of financial capital, lack of human capital, and trade barriers.  If analyzing economic constraints, select one and analyze its impact on the budgetary process.

Political constraints include tax policy, labor law, environmental law, trade restrictions, tariffs, technology, and disruptive innovations.  If analyzing political constraints, select one and analyze its impact on the budgetary process.

Use a heading for each of the two specific constraints you selected. For example:

Impact of Monetary Policy on the Budgetary Process.

Each constraint impacts the budgetary process based on its intent, goals, objectives, etc.  They cannot be treated as a single entity for analytical purposes.

Using the outline is designed to clarify the assignment by breaking it into parts so it can be dealt with systematically. It will assure that the assignment specifications are met and will improve the quality of your report. 

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