The role of budgets in local government: problem or solution?

This paper considers criticism of the practice of budgeting in local government, and proposals for both a standardised budgeting model and standardised financial reporting. The paper examines whether standardised models are appropriate, particularly in the context of ambiguous outcomes, criticism of accrual accounting in the public sector, and a focus on the implementation of a flexible best value regime. In light of the criticism that accrual accounting and other private sector practices are not necessarily appropriate for the public sector, this paper questions whether the conclusions of a 2001 report that budgeting practices are exceedingly poor are justified.