BUDGET CYCLE 2
Introduction
The city requires an operational budget to guide the administrations in resource allocation to ensure runs smoothly. The budget will also ensure that all administrative sectors of the city are included in the financial allocation and therefore enhancing their functionality (Anessi-Pessina, Barbera, Sicilia & Steccolini 2016). Among the different sectors which will be included in budget allocation will include; the security sector- under this the city will budget for its security requirement to ensure that it’s in a place to protect their citizens. As population increases security threat increases, this is because the increase in unemployment leading to an increase in crime level.
The budget, therefore, ought to be adjusted to meet these new developments. Another sector which will require effective budgeting is the remuneration of the city staff. The city will require a skilled human resource to ensure that the city operations are carried out effectively. These employees will require payment for the work done; budgeting has to be undertaken to ensure that the salary expenditure is set aside and avoid issues which may arise due to lack of remuneration. The medical sector also requires to be budgeted for and financial resources allocated to ensure that the city serves the health issues or the city residents.
The economic activities of the city require support from the local authorities to boost their contribution to the economic growth of the entire city. The city authorities, therefore, ought to ensure that the budget and allocate financial resources to support the local businesses. The infrastructural base of the city also will require development to facilitate the movement of people and also the goods and services within or without the city. Infrastructural development requires heavy investment on the part of the authorities; financial budgeting, therefore, is necessary to first identify the financial resource requirement in developing the infrastructure to meet the required standards.
Budget development
The budget required will be funded mainly through taxation of the locals, and partly the authorities will seek financial aid from the central government as well as the well-wishers. Taxes will be imposed in the previously un taxed items to enable the government to collect the finances it requires to finance the budget. Taxation increment will also be witnessed on the part of non-essential products whose consumption may be considered a luxurious adventure. Through this approach, the residents will not be oppressed having to suffer from the high cost of living (Crossman, & Fischer, 2016). The remaining part of the budget will be financed through loans both locally and outside the city’s borders. The city’s treasury officer will be tasked with ensuring that the required resources are solicited.
Execution
The solicited finances will be strategically allocated to different sectors to ensure that the development objectives of the local government are met. Sixty percent of the planned budget will be allocated to development projects within different departments of the city’s jurisdiction with the rest 40 percent being used as a budget back-up and also to facilitate the remuneration of the city staffs. The financial allocation will be based on the financial requirement criteria and in line with the set objectives. The security and the health sectors will be prioritized due to the nature of their operations.
Evaluation
The evaluation of the budgeting effectiveness will be based on the standards required as well as the local authorities’ objectives. The office of the city’s’ auditor will be involved in financial control functions. Effective monitoring will be undertaken to ensure that the allocated resources are safeguarded and protected from being misused.
References
Anessi-Pessina, E., Barbera, C., Sicilia, M., & Steccolini, I. (2016). Public sector budgeting: a European review of accounting and public management journals. Accounting, Auditing & Accountability Journal, 29(3), 491-519.
Crossman, H., & Fischer, D. (2016). Participatory Budgeting and Transparency in Municipal Finances.