Priority-Based-Budgeting: A Debacle in a Mono – Cultural Economy

Objectives: The contention of this paper is to highlight the difficulties in implementation of priority-based-budgeting in a mono-cultural economies of the third world countries. To device a means by which the budgetary system could be applied meaningfully and advantageously, linking the conventional/traditional methodology to the neo-supra system. To highlight outstanding advantages of priority-based-budgeting, when cautiously applied and strictly adhered by its norms. It is a neolithic advent of budgeting implementation.

Method/Approach: Priority-based-budgeting is a non-conventional budgetary implementation, hence, its data collection is marred by myopic tendency of the budget segment of the concerned organization. Data procurement has been a stumbling block due to unfamiliarity of the system to the public sector as well as private segment of the economy. A structured questionnaire was adopted to harness the concept of priority-based-budgeting as a focus to the respondents. Online discussions were carried out on a lesser scale particularly with the closely affiliated individuals in some subsections of the government and organizations as a whole. Many key-stakeholders in private institutions were highly fascinated with the concept and were wiling to furnish their available information regarding the progress of the investigation.

Findings: A conventional budgetary system is a tailor made adaptability due to its recurring methodology, recycling its application with little or no adjustments. A non-convention budgetary implementation (priority-based-budgeting), is a Neolithic budgetary implementation which does not take into consideration the previous trend of activity. A method of budgeting whereby all activities are re-evaluated each time a budget is set. Discrete levels of each activity is valued and a combination is chosen to match funds available. It is ac challenging approach.

Originality/Value: The meritorious advantage of priority-based-budgeting is its challenging approach. It is a decision oriented approach, rather than accounting oriented approach. Decision packages are ranked in order of priority which are designed to reflect the organizational preferential objectives.