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– Nelson Mandela

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Q 1. What is the role of government in public budgeting and financial management? 2. How did the publication of the Reinventing Government: How the Entrepreneur Spirit is Transforming the Public Sector in 1992 change the approach of government towards public budgeting? 3. Do you think that governments can and should be run like private business? 4. What are the main differences between public budgets and private budgets?

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A vital role is played by the government in the social and economic development in functioning for work to be developed of the mechanisms of financial management in order for consolidated financial statements to be provided that aids the operations of the base of the management of government financial decisions. The chief role of the government is scarce resource allocation. Services are provided to the public with the help of resources’ acquisition by the government. Development of the economy, distribution and allocation are vital government role (Premchand, 2001).