CBS Government & Public Sector Budgeting Flashcards

Program Evaluation and Review Technique (PERT) is most commonly used in public sector budgeting to:

Answer: Schedule and manage complex projects by estimating time for activities under uncertainty

PERT uses optimistic, pessimistic, and most likely time estimates to map project activities and identify the critical path for completion.

A government budget is considered 'balanced' when:

Answer: Total revenues equal or exceed total expenditures for the fiscal year

A balanced budget means the government's revenues are sufficient to cover all expenditures, resulting in neither a deficit nor a surplus.

Fund accounting in the public sector is used primarily to:

Answer: Demonstrate and ensure compliance with legal restrictions on how specific revenues may be spent

Fund accounting segregates resources into separate accounting entities to ensure money raised for specific purposes is spent only on those purposes, as required by law or donor restrictions.

The Congressional Budget Office (CBO) provides Congress with:

Answer: Independent economic and budgetary analysis and cost estimates for legislation

CBO is a nonpartisan agency that provides objective analysis of the federal budget, economic outlook, and the fiscal impact of proposed legislation.

Intergovernmental grants that allow state and local governments broad discretion in how funds are spent are called:

Answer: Block grants

Block grants provide funding for a broadly defined purpose (e.g., community development, social services) with few strings attached, giving recipients flexibility in allocation.

Which government budgeting approach involves estimating the cost of providing a given level of services and then working backward to determine required revenues?

Answer: Target-based budgeting

Target-based budgeting sets a spending ceiling first, then requires managers to prioritize services within that constraint rather than building up from historical spending.