ABSTRACT
Public budgeting is a political process in which scarce resources in society are extracted from the private economy and allocated to public service providers to accomplish the social, economic, and political goals desired by the public (Mikesell, 2002). Since there are diverse and often conflicting interests and priorities in society, policymakers and budgeters in a democratic society have to articulate these preferences carefully and try to reach
policy compromises in spending and revenue decisions. The decision about who gets what and when is often not purely a question of allocative and technical efficiency, but an issue of who controls the agenda and information flow and who has enough political leverage in the decision-making process within a specific social and ideological environment (Jacoby, 2000; Lee, Johnson, and Joyce, 2004). Thurmaier and Willoughby (2001) argue that budgeting is built on multiple rationalities. Economic rationality, social norms and beliefs, political feasibility, and legal constraints all play an important role in influencing budgetary decisions.
