Budget Formulation: Many Approaches Work but Some Improvements Are Needed

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Report Type	Reports and Testimonies
Report Date	Feb. 29, 1980
Report No.	PAD-80-31
Subject	Health care programs Land management Military budgets Planning Prioritizing Program evaluation Zero-base budgeting Budget activities Appropriations Conservation

Summary:

GAO conducted a series of case studies of the budget formulation process in 10 Federal programs in the Departments of Defense, the Interior, and Health, Education, and Welfare.

The case studies revealed a variety of budget formulation styles. In some cases, budget requests were developed through "bottom-up" methods that involved field offices and no prior guidance or fixed request amounts from higher levels. In other cases, budgets were developed through "top-down" methods in which the request amount was set in advance at top levels and which entailed little or no field office work. Often, the approach followed related to the type of program, and no one approach appeared the best for all programs. Formulation weaknesses and potential problems requiring action were identified in the planning process, zero-base budgeting (ZBB) procedures, and in agencies' methods of reporting to Congress.

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Budget Formulation: Many Approaches Work but Some Improvements Are Needed