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1、CHAPTER2TheLogicoftheBudgetProcessThebudgetprocessprovidesthemediumfordeterminingwhatgovernmentserviceswillbeprovidedandhowtheywillbefinanced.Itmayalsohelpestablishhowtheserviceswillbeprovided.Thebasicbudgetingproblem,simplystated,isthefol-lowing:“Onwhatbasisshallitbedecidedtoallocate
2、XdollarstoactivityAinstead1ofactivityB?”Thatisaprettysimple-soundingquestionbut,likemanythingsinlife,itsapplicationiswheretheproblemslurk.Howmanydollarsshouldbemovedfromprivatebusinessesandindividualstogovernmentand,oncemovedtogovern-ment,howmuchshouldgotoeachgovernmentactivity?Indeed
3、,theanswerisremarkablyclear:movemoneyfromprivatetopublicuseandamongalternativepublicusesuntilitisnotpossibletomoveonedollarfromoneusetoanotherwith-outlosingasmuchfromwhereyoutookitasyougainfromwhereyouputit.It’snotabigdealconceptually.Thereisnolackoftheoreticalguidanceastohowthingssho
4、uldwork.Marketsforprivategoodsdotheallocationinvisibly,aspricesandprof-itsprovidetheresourceallocationsignalsandprivatebusinessesandindividualstakeitfromthere.Butmarketsdon’tworkforpublicgoods,thehometurfofgovern-ments,soherecomethelawmakerstodotheallocationjobthatmarketscan’t.Theymay
5、bunglethejob(inademocracy,weelectedthem,soitisultimatelyourfault),butthebudgetprocessiswherethosechoicesgetmadeforgovernmentoperations,notsoquietlyandwehopenotsoinvisibly,butdefinitelypolitically.Whengovernmentstaxandspend,makingdecisionswithintheframeworkofthebudgetprocess,theyaredoi
6、ngforthepublicsectorwhattheprivatemarketdoesforthepro-visionofprivategoodsandservices.Theyaredecidinghowbiggovernmentwillberelativetotheprivatesectorand,withingovernment,therelativesizeofthevariousprogramsandagenciesthatthegovernmentprovides.Theyevenmakedecisionsabouthowprogramsandage
7、ncieswilloperate.Eachgovernmenthassomemethod1V.O.Key,Jr.,“TheLackofaBudgetaryTheory,”AmericanPoliticalScienceReview34(December1940):1137.Thesentencesafterthisquotationinthistextdooutlineaprecisebudgetarytheory.Asitturnsout,thetitleiswrongbecausetherehasbeennoabsenceofabudgetarytheoryf
8、orman
