ABSTRACT
Public choice theory applies the method of economics to the subject of government and assumes that political actors may be greedy and self-centered. This approach provides several rich, albeit controversial, perspectives on public budgeting issues. These include the potential for manipulative budgetary negotiations between agency heads and legislators, the effect of the structure of government on its size, and the propensity of interest groups to seek favorable legislation that is socially inefficient. While public choice theories may be at odds with some of the normative foundations of public administration, some of these theories are plausible explanations for some developments and have also provided the intellectual justification for several reform proposals. Therefore, it is important for practitioners in budgeting to understand this perspective.
