ORÇAMENTO PÚBLICO - Aula 01 - Conceito e evolução do orçamento público.

Summary

This video explores the evolution and types of public budgeting, detailing the shift from classic budgeting to performance-based and program budgeting. It highlights the differences between incremental and zero-based budgeting, explaining their advantages and challenges. The concept of participatory budgeting is also introduced, where the public is invited to contribute to the decision-making process regarding fund allocation. The video serves as an insightful guide into the complexities of public finance management and budgeting methods used in government operations.

Takeaways

• 😀 Public budgeting is a legal tool that outlines forecasted revenues and authorized expenditures, ensuring that government actions are aligned with available resources.
• 😀 The budget is an essential document in managing public funds, and in Brazil, it must be approved annually before the fiscal year begins.
• 😀 There are three main types of public budgeting: classical budget, performance budget, and program budget, each evolving to address different needs of government financial management.
• 😀 Classical budgeting focuses on fiscal control and ensures the government does not overspend, without providing mechanisms for post-expenditure accountability.
• 😀 Performance budgeting introduced accountability, requiring the government to report back on what was achieved with the allocated funds, focusing on outcomes rather than just limits.
• 😀 The program budgeting system combines fiscal control with detailed planning, setting measurable goals for a set period, such as four years in Brazil.
• 😀 Zero-based budgeting requires starting from scratch each year, where every expense must be justified anew, ensuring resources are allocated efficiently.
• 😀 Incremental budgeting is based on the previous year’s budget, making adjustments as needed, which is faster but may perpetuate inefficiencies.
• 😀 Participatory budgeting allows community input in budget planning through public hearings, increasing transparency but not shifting the final decision-making to the public.
• 😀 The Brazilian budget system primarily uses program budgeting, where long-term goals are set and resources are allocated accordingly, with opportunities for participatory budgeting in certain regions.

Q & A

What is the main purpose of a public budget?

The main purpose of a public budget is to plan government spending and ensure that it does not exceed the expected revenue, aiming for fiscal balance and proper allocation of resources for public policies.

How did the public budget evolve historically?

The public budget evolved in three phases: the Classic Budget, which focused on fiscal and political control; the Performance Budget, which included post-expenditure accountability; and the Program Budget, which emphasizes planning, goal-setting, and accountability.

What is the difference between Zero-Based Budgeting (ZBB) and Incremental Budgeting?

Zero-Based Budgeting requires justifying all expenses from scratch every year, while Incremental Budgeting builds upon the previous year’s budget, making adjustments for inflation or other factors, making it faster but less thorough.

Why is Incremental Budgeting more commonly used than Zero-Based Budgeting?

Incremental Budgeting is more commonly used because it is faster and easier to implement, which is necessary given the time constraints for budget preparation and approval. Zero-Based Budgeting, though detailed, is time-consuming and complex.

What is the role of Participatory Budgeting in the public budgeting process?

Participatory Budgeting allows the public to engage in the budget formulation process by suggesting how government funds should be allocated, usually through public hearings or other channels for community input.

Does Participatory Budgeting give the public final authority over the budget?

No, Participatory Budgeting allows the public to make suggestions, but the final authority to approve the budget lies with the legislative body, as stipulated by law.

What is the primary function of the budget under the Program Budget phase?

Under the Program Budget phase, the focus is on planning and management. The budget is designed to achieve specific goals, and there is a requirement for detailed accountability on whether those goals are met.

What is the role of the Legislative Body in the budgeting process?

The Legislative Body plays a crucial role in approving the budget. Even though public input is sought through Participatory Budgeting, the legislative body retains the final authority to approve the proposed budget.

Why is the budget categorized as a law?

The budget is categorized as a law because it legally authorizes government spending. It must be passed by the legislative body, ensuring that all public funds are allocated and used according to the law.

What are the advantages and disadvantages of Zero-Based Budgeting?

The main advantage of Zero-Based Budgeting is that it allows for detailed planning and a review of all expenditures each year, ensuring that only essential programs receive funding. The disadvantage is that it is very time-consuming and resource-intensive, requiring extensive justification for all expenses.