Budgeting and Forecasting

Budget Games

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Budget Games

Local government budgeting is about deciding how to distribute resources among different needs. Local governments are usually divided into departments, each having some freedom to manage their daily tasks and request funding. Central budgeting authorities oversee and control the distribution of these funds. While this setup has its advantages, it can also lead to competition among departments when a local government is deciding who gets what. This competition results in “budget games,” where departments engage in strategies to secure more resources. The most common game is “padding the budget,” where departments ask for more money than they actually need. There are many other such games as well. Before we delve into these games, here is why budget officers must be aware of them.


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