Introducing Programme Budgeting in Norway
| DOI | 10.1177/002085237103700309 |
| Date | 01 September 1971 |
| Published date | 01 September 1971 |
| Author | Rüdiger W. Neumann |
| Subject Matter | Articles |
Introducing Programme Budgeting
in Norway*
by
Rüdiger W. NEUMANN,
Counsellor, The Government Institution
of Organization and Management, Oslo
UDC 336.121.22 (481)
The system
When explaining a system, it may be a help
to do so by means of graphs. On pages 408-9,
When studying modern planning and
we present two diagrams. Diagram No. I
management methods one will soon come
gives a general survey of the central parts of
across an overall term which is used in connec-
programme budgeting. Diagram No. II is a
tion with their main objects : the term
special presentation of the programme concept.
I system’. This paper deals with the pro-
In order to facilitate easy identification, the
gramme budgeting system ’. What is the con-
various parts have been numbered and will
ceptual content of that expression ? What is
when necessary be referred to accordingly.
a programme, what is budgeting, and what do
We start with Diagram No. I, a survey of the
we mean by the term system’ ?
central parts of programme budgeting.
We should not make things more complicat-
First of all we emphasize the requirements of
ed than they are, but go directly and without
society (1). These may for instance be require-
too many definitional gymnastics to the terms
ments for food and clothing or for transporta-
in question. At this stage it will be sufficient
tion of goods and passengers.
Political
to define a
programme ’ as a plan of action.
authorities will evaluate all the requirements
Budgeting deals with the distribution of money
and decide on the degree of governmental
or with the distribution of other, mainly
involvement. In programme budgeting one
economic, goods. Further, we know that
normally pays most attention to the fulfilling
budgeting points to the future. Finally, a
of such requirements as defence, health,
certain pattern is used when making the budget.
education, transport, etc. Many of these
After all, a system is no more than a survey of
requirements are common ones. Involvement
a number of elements which are correlated in
in these fields establishes governmental objec-
some way or another.
tives (2).
New recipe
Operational objectives
The elements we shall concentrate on in the
To start with, the various objectives are not
following discussion will be those of programme
defined in too much detail. What is the sub-
budgeting. What are these elements and how
stance of
transportation requirements and what
are they connected ? Before going into any
are the precise governmental objectives in that
detail, we want to point out that our subject is
area like ? To proceed it is important to
limited to central government activity as part
answer questions of this kind. We must dis-
of the public sector. In that sense, programme
sect such terms as ’ transportation require-
budgeting could be said to represent a new
ments ’ and arrive at the elements of require-
recipe for the spending of the 27,000,000,000
ment, which in turn enable us to formulate
crowns the Norwegian Government disposes
operational and precisely defined objectives.
of in 1972.
A closer look at society’s requirements for
transportation shows among other things that
transportation must proceed in a safe manner.
That gives, however, no operational objective.
* This article was published in Norwegian under
In transportation safety may be expressed in
the title &dquo; Programbudsjetteringssystemet -
Ny mite
various
i bruke
ways. ’ Prevention of traffic accidents
tjue milliardar pill, in Administraajonsnytt,
on
No,
roads’
4, September 1971, pages 19 and ff.
may be a precise and operationally
404
formulated objective, i.e. an objective which
ones.
Nevertheless, structurizing and ap-
enables the decision maker and those who carry
proaches to make concepts measurable will
out and control the job, to determine the level
often lead to ’ means-and-ends’ problems,
of accomplishing the objective in an accurate
which at times may be rather troublesome to
manner.
In other words, operational terms
discuss. When practising programme bud-
can be quantified and measured. In the
geting we eliminate problems of that kind by
following we use the objective ’ Prevention of
accepting the competent authorities’ distinc-
traffic accidents on roads ’ to illustrate how
tion between means and ends.
programme budgeting works.
Another possible cause for errors with
welfare indicators lies on the data side. The
Structuring objectives
statistical material may be insufficient or we
The definitional
may not be able to make use of all relevant
process will give the specific
data available. The indicator will then turn
objective a distinct position within a structure
out to be
of objectives (3). With
misleading. In the case of the
a side glance at or-
ganizational circumstances in
example chosen the indicator of accidents
government ad-
ministration it will be advantageous
might represent concise data for some, but not
to use four
for all
levels in that
regions included.
structure.
At the lowest level are
...
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