The Next Government: Fiscal Strategy

Budgeting as a management issue for the federal government encompasses both short-term operational and long-term strategic goals. Federal spending priorities not in line with fiscal reality impact both taxation and government functions. Therefore, use of strategic fiscal management tied to performance measures is imperative. 

Performance budgeting is the newest management idea to surface at the federal level, but budgets in the years ahead face more fundamental challenges than can be solved by such reforms alone. The most pressing issues are ballooning deficits, expanding commitments to entitlement spending, insufficient tax receipts, and foggy accounting practices that do not reflect the true state of the country’s fiscal status. Comptroller General David M. Walker has been on a “Fiscal Wake-Up Tour” of the country since September 2005, educating Americans about the lack of fiscal discipline in Washington.

For further information:

GAO Report: “Performance Budgeting: States’ Experiences Can Inform Federal Efforts" (2005)
GAO Fiscal Wakeup Tour
Fiscal Wakeup Tour FAQs
NPR Report on Fiscal Wakeup Tour
Government Executive: “How Government Plays the Budget Game” (2002)