ABSTRACT
This chapter describes relevant terminology used in Germany is explicated and basic organizational traits of the budgeting and auditing system at the level of federal government. It investigates the historical development of the bugetary system and the role of financial auditing. Budgeting and accounting practices have developed over a period of 250 years to serve a number of functions. The chapter analyzes the selective criteria according to which this institution, which has its roots in the absolutist state, operates. It summarizes the findings by asking, from a systemic perspective, why evaluation is not more firmly linked to budgeting in the Federal Republic of Germany. Consistent with the character of a two-track system, budgetary processes were hardly affected by government policies in the 1980s to de-bureaucratize and privatize public activities. Auditing is part of the parliamentary discharge procedure and serves parliamentary control functions by keeping individuals in the executive.
