The Lack of a Budgetary Theory

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Abstract
On the most significant aspect of public budgeting, i.e., the allocation of expenditures among different purposes so as to achieve the greatest return, American budgetary literature is singularly arid. Toilers in the budgetary field have busied themselves primarily with the organization and procedure for budget preparation, the forms for the submission of requests for funds, the form of the budget document itself, and like questions. That these things have deserved the consideration given them cannot be denied when the unbelievable resistance to the adoption of the most rudimentary essentials of budgeting is recalled and their unsatisfactory condition in many jurisdictions even now is observed. Nevertheless, the absorption of energies in the establishment of the mechanical foundations for budgeting has diverted attention from the basic budgeting problem (on the expenditure side), namely: On what basis shall it be decided to allocate x dollars to activity A instead of activity B?Writers on budgeting say little or nothing about the purely economic aspects of public expenditure. “Economics,” says Professor Robbins, “is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.” Whether budgetary behavior is economic or political is open to fruitless debate; nevertheless, the point of view and the mode of thought of the economic theorist are relevant, both in the study of and action concerning public expenditure.

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