Posted by Renaud Duplay
Is a government budget a forecast or an authorization? Both, of course, but ask various PFM practitioners to pick one answer first and you will see a clear divide between “macro-fiscalists” – who think forecasts first – and financial managers – who think of control and authorization first. But you may also detect some cultural divide as well: people from Westminster style countries may think forecasts first while people from continental European countries, like France, may choose authorization as the main feature of a budget.
This cultural divide, which my FAD colleague Benoit Chevauchez already discussed on a previous post on PFM taxonomy, may be linked to the various forms a budget can take as both a technical and a political object.