Integrated Budgeting for Development: Mechanism for Strategy Integration of Five Economic Ministries

Abstract

Integrated budgeting is a mechanism used for linking the functions and operations of government agencies and ministries in order to allocate resources efficiently, to reduce the duplication and resource waste, and to achieve strategic objectives effectively. This paper has three main objectives: 1) to study the meaning and concepts of integration; 2) to explore the development and the limitations of integrated budgeting practices in five economic ministries; and 3) to suggest principles and guidelines for practices of integrated budgeting in related ministries. It is found that the problems of integrated budgeting concern vertical and horizontal integration, structure and status of agencies, the discontinuity of the issues of integrated budgeting, and mechanisms of integrated budgeting. Lastly, the article recommends certain principles and practical guidelines for integrated budgeting.