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This article aims to examine empirically the relationship between budget periodicity and expenditure volatility in state governments. Using a large panel dataset for fifty states over the years 1960-2012, after controlling for institutional, economic, and political factors, we find general expenditure of biennial states has been significantly less volatile than that of annual states. The finding suggests that a choice between annual and biennial budget period can emerge as a feasible and effective countercyclical strategy to overcome fiscal difficulties in the short run and promote fiscal stability in the long run.

Much of the budgeting literature has focused on the questions of “how” budgets are prepared and “how” budget decisions are made. Minimal attention has been directed to “how” budgets are executed. This paper focuses on this issue with special emphasis on state government budget execution processes. The paper provides an overview of the similarities and differences of state and federal budget execution follows by an assessment of how state balanced budget requirements place special responsibilities on state budget offices to monitor “within” budget execution year expenditures and revenues. Actions which may be taken to insure that state budgets are balanced are discussed. These actions are enumerated and analyzed in terms of legislative and executive branch authority and responsibility shifts.

This paper argues that the search for a theory of public budgeting has proceeded mainly on assumptions of the rationalist paradigm. This approach yielded mostly technical explanations for budgeting phenomena. These explanations fail to capture the complexities of public budgeting and yield incomplete theories. Without attempting to break new ground, the authors argue that budgeting theory should be guided by heuristic concepts borrowed from open systems theory. This offers greater potential for reconciling the rational and non-rational aspects of budgeting and permits constructive synthesis of insights from extant theories of budgeting without rejecting the rationalist paradigm. This approach views budgeting as only one of the complex functions governments perform to cope with their environment and to maintain stability.

An exciting opportunity that many advanced industrial democracies faced in the late 1990s was the movement from budgetary deficit to surplus. This came after years of persistent deficits. Traditional decisionmaking theories such as budgetary incrementalism failed to explain this longrun relationship, since it has been inherently a short-run theory. This paper uses rational expectations theory to demonstrate its relationship to budgetary decision-making reforms and the deficit (surplus) for Canada, the UK and the United States. The results demonstrated that there was an intertemporal budget constraint in operation in the three countries, and decision-makers at the macro level used rational expectations in the formulation of their annual budget. In the theory, budget actors strived to balance their budget, but did so over the longrun as opposed to the short-run incrementalist interpretation.

Purpose – This research analyzes and describes the implementation of the North Aceh Regency education budget policy for improving the quality of education in relationship to the impact of the special autonomy budget.

Design/Methodology/Approach – This research uses qualitative research, descriptive-qualitative analysis methods, and qualitative explorative methods.

Findings – The results show that the implementation of the special autonomy education budget policy of North Aceh Regency to improve the education quality has not run optimally. The main obstacle is the inadequate human resource issue, including the leadership problems of regional heads who should prioritize the development. Based on field data of the actors involved in the formulation of the education quality improvement program in Aceh Utara District, especially the legislative branch (namely BAPPEDA), the education office and members of the Aceh legislative team, the post-conflict Aceh representation of the legislature at the provincial level, the DPRA and DPRK at the district level / in the field of political will produced. The resulting program does not focus on the pattern of improving the quality of education, the policy is more rhetorical, and the program implementation is often adapted to the wishes of political actors.

Research Limitations/Implications – Given the fundamental differences in the root causes of primary and secondary education in Aceh, further research is needed to determine whether similar results will be obtained in other parts of Aceh.

Originality/Value – Identifies factors that lead to the low quality of educators and the unequal distribution of teachers in the Aceh Regency.

Paper Type – Research paper

The purpose of this study is to explore ways to improve the effectiveness and efficiency of national human resource development (NHRD) policies led by South Korean central government agencies, identifying what policy decisions have been made and how they were implemented.

The authors collected data from the 2016 NHRD policy budget plans of the ministries and used content analysis. The unit of analysis was the fourth level, a sub-task, in each ministry’s policy budget plan. All coded policy contents were analyzed in terms of the centralized NHRD model, as well as through the perspective of developmental task theory.

The study yielded the following policy and implementation problems. First, the current system of NHRD policies established and implemented by individual ministries risks hampering the validity and effectiveness of the policies. Second, the structure of NHRD policy execution may cause similarity and redundancy across policies, thereby hindering the efficiency of the policies. Third, it is problematic when NHRD policies focus on solving short-term problems to the exclusion of long-term ones.

This study provides public recommendations to improve the effectiveness and efficiency of NHRD policies created by South Korea’s Central Government. If such an analysis has been made internally by the government, it has not been made publicly available. It also offers practical insights that might help to improve state-led human resource development policies for other countries – especially developing countries – that are planning to introduce central government-led NHRD or to improve existing NHRD policies.

The purpose of this paper is to propose two performance-based capital budgeting (PBCB) approaches. The proposed approaches aim to assign limited capital within different firms based on their performance. These approaches have been applied to capital budgeting process of the technical and vocational training schools of Semnan Province, Iran for the fiscal year 2014–2016. Although the current capital of each decision-making unit (DMU) is secured in the first approach, the second approach provides possibility of sharing the capital between DMUs.

Data envelopment analysis which is a broadly used mathematical programming technique for assessing performance of DMUs is utilized for the first phase of both approaches. The proposed models are based on linear programming. Different scenarios are presented and their pros and cons for the capital budgeting process are discussed.

The proposed approaches are applied to capital budgeting process for a fiscal year of technical and vocational training schools of Semnan Province, Iran. The budget allocation of the previous year has been found to be non-optimal in terms of budget consuming. This emphasizes reconsideration of budget allotment within schools. The results show a high potential for producing more outputs. The second approach that provides the possibility of sharing and realloting of budget between schools based on their performance may be crucial for those schools that are not performing efficiently because there is possibility of losing budget in each given year in contrast with the previous years.

This paper proposes two linear programming-based approaches for the PBCB. The author not only deals with static framework but also proposes dynamic structured models. Using performance-based budgeting in organizations has been emphasized by authorities in Iran for many years. Using the proposed approaches, different suggestion and policy recommendation for decision makers in process of capital budgeting process within period of study are provided for technical and vocational training schools of Semnan Province, Iran.

This study investigates the transparency of budgets by examining its relationship with financial sustainability, which is a central area of research in the public-sector context.

Referring to the public value framework, a large sample of 110 countries has been investigated, implementing econometric models where the dependent variable is the Open Budget Index (OBI), published by the International Budget Partnership (IBP), and the test variables are different indicators of financial sustainability.

The results that emerge from the analysis suggest that budget transparency could be positively associated with the financial sustainability of governments, beyond the traditional aims of enhancing citizens' trust and participation.

This research offers important insights for policy areas, suggesting that improving budget transparency could be beneficial for public administrations because of the positive association with financial sustainability.

Fiscal sustainability is high on the global political agenda. Yet, implementing the needed performance‐orientation throughout public‐sector organizations remains problematic. Such implementation seems to run counter to deep‐seated social structures. In this paper the aim is to shed light via key change agents' views on these social structures at the management level during the implementation of a performance‐based budgeting scheme.

The authors analyzed documentary data and conducted in‐depth, semi‐structured interviews with key change agents operative within central government ministries in The Netherlands. The data were analyzed using a structurational approach to identify the enablers and barriers to performance‐based budgeting implementation.

In total, 29 social enablers and barriers to performance‐based budgeting implementation were derived. These were categorized into: Context, Autonomy, Traditional beliefs, Influence on results, and Top management support. Based on these categories five propositions were developed on how social structures enable and constrain performance‐based budgeting implementation among public managers.

The study was executed in one country in a specific period in time. Although the problems with performance‐based budgeting exist over the globe, research is needed to study whether similar social structures enable and impede implementation.

Policy makers and change agents aiming to improve fiscal sustainability by budgeting reform need to consider the found social structures. Where possible they could strengthen enablers and design specific comprehensive measures to tackle the barriers identified.

This paper provides insight and develops knowledge on the social structures that enable and constrain performance‐based budgeting, which in turn improves fiscal sustainability.

This paper examines public budgeting in the first 30 years of China under central economic planning and one-party system. The research question is whether budgeting operates as it does under market economy in a democratic system. Analysis of historical documents finds that as a subordinate to central economic planning, budgeting was not able to play its functions. Though China was successful in employing all fiscal and monetary means to channel resources into targeted policy areas, budgeting was not effectively used as an administrative instrument. In the 30 years examined, the country seemed to be searching in vain for a workable budgeting system so as to avoid repeated financial frustrations.