Galaxy budgeting system - Research Paper Example

The galaxy budgeting system The galaxy budgeting system is an advanced system of budgeting for programs, which is pitched on the future predictions of the resource requirements for different programs, based on the history of the organization involved in budgeting (Dongsung, 92). The system operates on the basis of dividing the budget that is allocated to an enterprise into different programs, which are then subdivided into different activities, and the budget amounts allocated to such activities.

The subsequent performance assessments are done on the program and their activities, which then give periodic results regarding the resource requirements and usage by the different activities of the programs, which are then used as the basis for predicting the future budget requirements for programs and their subsequent activities (Dongsung, 97). The future budget is then informed by a comparison of the different programs and their resource consumption forming the basis for allocating future resources to such programs.

Thus, the galaxy budgeting system does not only assess funding on the basis of terms only, but also on the basis of program comparison. The differentiating factor between the galaxy budgeting system and the other budgeting systems is that, the galaxy budgeting system employs the history of an organization, to determine its future resource allocation, while basing the allocations on the previous information and accomplishments (Dongsung, 103). This means that programs that make greater accomplishments have a higher chance of being allocated even more resources, to enhance their further achievements.

The advantage presented by the galaxy budgeting system is that; it safeguards against money wastage or confining of resources in the unproductive areas, since the system ensures the allocation of resources based on the productivity of the programs, thus steering the resource allocation in the right direction (Dongsung, 107). Works CitedDongsung, Kong. "Performance-Based Budgeting: The U.S. Experience." Public Organization Review 5.2 (2005): 91-107.