The budget cycle and making of public policy are important aspects for consideration when preparing a budget. A business budget cycle is the time frame a budget covers. This is with respect to companies using monthly, quarterly and annual budget cycles to control costs and streamline administrative duties. Purposes of these activities include helping control costs. Several business cycle effects are realized in making a successful budget cycle. At the end of each cycle, the accounting will perform a budget variance analysis. This is to compare how business performance compared to projections. This gives the management more detailed financial information to make decisions, such as how to manage cash flow during different quarters of a seasonal budget. The budget cycle and making of public policy require rigorous preparation to ensure success.
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BUSINESS CYCLE EFFECTS AND THE BUDGET EXECUTION STAGE
In practice, budgets generally are not implemented exactly as they were approved. Negative business cycle effects will occur when the budget execution stage is not properly directed. Deviations can result from conscious policy decisions or in reaction to changing economic conditions, but concerns arise when there are dramatic differences between the allocated budget and actual spending that do not correlate with any measurable policy. Sometimes these cases result from outright abuse by the executive, but they may also reflect the effects of a poor budget process and technical problems. For instance, the budget may not be clear about the intended purposes of particular funds, and weak monitoring and reporting systems can limit the availability of information that the executive needs to monitor the flow of expenditures. The budget cycle and making of public policy consider the effects of the budget execution stage.
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MAKING OF PUBLIC POLICY AND POLICYMAKING ISSUES
The making of public policy is crucial to ensuring citizens’ problems are resolved effectively. At the federal level, public policies are enacted to regulate industry and budget, to protect citizens at home and abroad, to aid state and city governments and people such as the poor through funding programs, and to encourage social goals. . These are agenda building, formulation, adoption, implementation, evaluation, and termination. Before a policy can be created, a problem must exist that is called to the attention of the government. Illegal immigration, for example, has been going on for many years, but it was not until the 1990s that enough people considered it such a serious problem that it required increased government action. Specific events can place a problem on the agenda.
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