Conflicts During Budgeting Process

Topic: Public Administration
Words: 400 Pages: 1

With respect to the most common conflicts that arise during the budgeting process, there are several ones and their respective methods of resolving. Company versus division arises than an enterprise is willing to increase shareholders’ wealth, and it is necessary to use performance measures to encourage the division to accept projects (Kaplan Financial Team, n.d.). Division versus division is a conflict when units compete for resources, and prioritization strategy can be used (Kaplan Financial Team, n.d.). Finally, short-termism is the tendency to reject projects that are not beneficial in the nearest future, but linking the situation to potential bonuses of long-term operation can make innovation more attractive.

It is known that a phenomenon called “conflict of interest” exists, and it implies that the decision of elected officials can influence their financial state, so it is vital to ensure the ethically correct budgeting to achieve the efficient distribution of resources (Singer, 2018). There are several strategies that can be useful to reduce tension between elected and appointed officials (administrators). The budget shall be written out in detail to ensure that no hidden agenda is perused (Morgan & Robinson, 2015). Considering that humans need to have a possibility to cheat, it might be useful to allow one to get a small advantage that is beneficial to a bigger goal. Finally, a discussion of monthly steps can address conflicts related to the discrepancy in strategies.

The central purpose of the public budgeting process is to coordinate revenue and spending decisions. The other one is to monitor business performance, and the last one is to forecast profitability by evaluation of income and expenditure (Koizumi, 2017). The difference between the federal, state, and local budgets is the approach to monetary deficit. For instance, the first one is allowed to borrow money, while the other two have to meet the set requirements regarding the money spent (Singer, 2018; Morgan & Robinson, 2015). Simultaneously, the local budget is smaller than the federal one and is a part of it. However, two lower-level governments have more options to spend their funds on. It is also a significant point to mention that a smaller budget can be granted by the bigger one that is an example of how the processes of budgeting are different on distinct levels. The budget items are also different as sources of income and expenditures are specific and attributed to a particular level of budget.


Kaplan Financial Team. (n.d.). Chapter 7: Budgeting. Kaplan Financial Knowledge Bank. Web.

Koizumi, M. (2017). Inherent Strategies in Library Management. Chandos Publishing.

Morgan, D. & Robinson, K. S. (2015). Budgeting for local governments and communities. Armonk.

Singer, L. R. (2018). Settling disputes: Conflict resolution in business, families, and the legal system. Routledge.

Like all the other papers on our website, this essay has been voluntarily submitted by a student to help you become a better professional. If you would like to use this text in your assignment, we insistently ask you to include a proper reference to this page.

If you are the author of this text and prefer to remove it from our Politzilla database, please submit your request here.

Royer's Virtual Politics Article Critique
The Nature of Public Administration