Question

Governmental budgets may be organized in line-item, program, and performance formats. What are the differences among these three approaches? Make an argument that builds a case for hybrid presentations that includes all three elements. Please be detailed in the answers.

Answer 1

1. Line item format- budget in which financial items are grouped by department or sectors.
2. Program format- this is project specific budget where expenses and expected revenue are listed
3. Performance format- this reflects input of resources and output of services for each unit of organisation .

One of best cases is healthcare sector where government uses all 3 above budget types to determine performance of healthcare sector as how revenues will unfold based on expenses, secondly programme budget on various health programmes which Government will allocate, and lastly line item budget where each organisation in Healthcare sectir will receive subsidy as form kf government expense.