Budgeting Allocation

Literature Review on Budgeting: Allocation Formula

In the Encyclopedia of Public Administration and Public Policy, [1] Patricia Moore offers the following summary about the topic of Allocation Formula in Budgeting: Allocation formula is one of the decision rules used to allocate resources in the public sector. Usually, an allocation formula is specified in legislation, but sometimes it is provided by regulation. A good allocation formula is understandable, equitable, adequate, and predictable. Formula allocation makes justification for budget requests easier. Citizens tend to be accepting of allocations that are based on formulas, because they have an aura of objectivity and fairness. Nevertheless, their effectiveness can be severely hampered by data that are stale, inaccurate, and irrelevant.

Resources

Notes and References

1. Entry about Budgeting: Allocation Formula in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)

See Also

Further Reading

• Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)