Relationship of Budgeting And Accounting Implication For Public Policy

Abstract

The purpose of this article is to discuss the relationship between budgeting and accounting and the need for reporting on the budget to actual comparison in terms of the public policy.  Comparison information is necessary for both internal comparisons and external reporting that lead to policy decisions.  However, both internal and external reporting are hampered by differences in perspectives, philosophies, bases and definition of the entity between budgeting and accounting.