How the budget system can enhance the role of budget

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Question - As a management tool, budget plays a big role not only in planning but also used as a tool to control and evaluate government operations (Freeman & Shoulder, 1996). In the context of the Malaysian Government, various budgeting systems has been introduced since the country achieved independence. Latest, the national budget system has shifted from a modified budget system to a budget-based system Outcome based budgeting (OBB).

Explain two (2) factors that drive the government to switch to the OBB system.

Compared to the modified budget system, explain the two (2) advantages of OBB.

Based on the characteristics of the OBB system, discuss how the budget system can enhance the role of budget as a management tool.

Reference no: EM132833170

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