Question Tag: Programme-Based Budgeting

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MA – Dec 2023 – L2 – Q4b – Budgetary control

This question explains programme-based budgeting and outlines the disadvantages of line-item budgeting.

Slay Mama Plc (SMP) has been using line-item budgeting since its establishment. The Chief Executive Officer (CEO) recently attended a seminar on “Achieving the best out of your budget”. During the seminar, the facilitator highlighted the benefits of programme-based budgeting since it is a performance-based budgeting approach.

Required:

i) Explain Programme-Based Budgeting. (2 marks)

ii) Outline THREE (3) disadvantages of line-item budgeting. (3 marks)

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PSAF – Nov 2017 – L2 – Q3a – Public Sector Fiscal Planning and Budgeting

Distinguishing between Activity-Based Budgeting and Programme-Based Budgeting and explaining the advantages of Programme-Based Budgeting.

The Minister of Finance is mandated by law to develop a budgetary system throughout the public sector. Recently, the government has moved away from Activity-Based Budgeting to Programme-Based Budgeting system for many reasons.

Required: i) Distinguish between Activity-Based Budgeting and Programme-Based Budgeting. (4 marks)

ii) Explain FOUR advantages that Programme-Based Budgeting has over the Activity-Based Budgeting. (8 marks)

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MA – Dec 2023 – L2 – Q4b – Budgetary control

This question explains programme-based budgeting and outlines the disadvantages of line-item budgeting.

Slay Mama Plc (SMP) has been using line-item budgeting since its establishment. The Chief Executive Officer (CEO) recently attended a seminar on “Achieving the best out of your budget”. During the seminar, the facilitator highlighted the benefits of programme-based budgeting since it is a performance-based budgeting approach.

Required:

i) Explain Programme-Based Budgeting. (2 marks)

ii) Outline THREE (3) disadvantages of line-item budgeting. (3 marks)

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PSAF – Nov 2017 – L2 – Q3a – Public Sector Fiscal Planning and Budgeting

Distinguishing between Activity-Based Budgeting and Programme-Based Budgeting and explaining the advantages of Programme-Based Budgeting.

The Minister of Finance is mandated by law to develop a budgetary system throughout the public sector. Recently, the government has moved away from Activity-Based Budgeting to Programme-Based Budgeting system for many reasons.

Required: i) Distinguish between Activity-Based Budgeting and Programme-Based Budgeting. (4 marks)

ii) Explain FOUR advantages that Programme-Based Budgeting has over the Activity-Based Budgeting. (8 marks)

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