[PDF] Budget Issues Budgeting For Inflation In Selected Civil Accounts eBook

Author :
Publisher :
Page : 13 pages
File Size : 48,55 MB
Release : 1999
Category :
ISBN :

GET BOOK

In recent years, the Department of Defense (DOD) has experienced increases in purchasing power (called inflation dividends) that occur when inflation is lower than had been projected at the time funds were requested. DOD has used those savings to fund a larger program without requesting or receiving additional resources. In 1998, DOD calculated that lower than expected inflation would reduce fiscal years 1999 through 2003 procurement costs, i.e., nonsalary purchases, by $21.3 billion compared to what had been projected 1 year earlier. Of this amount, $2.8 billion, or approximately 1 percent of DOD's annual budget, was savings estimated for fiscal year 1999. DOD was allowed to keep these savings and, in some cases, authorized to redirect funds to programs and purposes other than those originally planned, authorized, and appropriated. Given DOD's experience, the question of whether civilian agencies should also identify the effect of lower inflation on their funding requirements has been raised. To understand better the challenges to developing this capability in civilian agencies, this staff study describes how inflation is treated currently in budgeting for DOD and civilian discretionary nonpay activities. The General Accounting Office developed case studies in 3 civilian agencies: Department of the Interior's Bureau of Land Management, Department of Energy's Office of Environmental Management, and National Aeronautics and Space Administration. GAO also reviewed prior work pertaining to inflation changes in both civilian agencies and DOD and obtained written responses from DOD to questions on how it budgets for inflation. Not included is a discussion of funding for civilian and military pay because decisions on annual increases are not tied to the rate of inflation. However, these costs can be more significant than the costs associated with nonpayroll-related inflation since federal agencies are required to absorb these increases.

Author : United States Accounting Office (GAO)
Publisher : Createspace Independent Publishing Platform
Page : 30 pages
File Size : 47,72 MB
Release : 2018-08-15
Category :
ISBN : 9781720563600

GET BOOK

Budget Issues: Budgeting for Inflation in Civilian Agencies

Author : Mr.Jack Diamond
Publisher : International Monetary Fund
Page : 84 pages
File Size : 29,2 MB
Release : 1999-07-01
Category : Business & Economics
ISBN : 9781557757876

GET BOOK

Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.