, PUB4870 ASSIGNMENT 6 SUMMARTIVE PORTFOLIO
COMPLETE ANSWERS 2025
DUE DATE: 26 JANUARY 2026
SECTION A:
1.1 Define Budget Integration and Explain Its Significance in Public Financial
Management
Budget integration refers to the systematic alignment and coordination of
government policies, strategic plans, budgeting processes, and expenditure
decisions to ensure that public resources are allocated and utilised in a coherent and
unified manner. It involves linking policy formulation, financial planning, budget
execution, and performance management into a single public financial management
framework, rather than treating these processes as separate or fragmented activities
(Allen et al., 2004; National Treasury, 2022).
In public financial management, budget integration ensures that budgeting is not
merely an accounting exercise, but a strategic tool that translates government
priorities into funded programmes and measurable outcomes. By integrating
planning and budgeting, governments are able to ensure that financial decisions
directly support policy objectives and service delivery commitments (World Bank,
2018).
The significance of budget integration in public financial management can be
explained as follows:
• Alignment between policy priorities and financial resources:
Budget integration ensures that government policies and strategic objectives
are adequately funded, thereby reducing the common gap between policy
formulation and implementation (OECD, 2019).
, • Efficient and effective use of public funds:
Integrated budgeting minimises duplication of programmes and fragmented
spending across departments, promoting efficiency and better value for
money in the use of scarce public resources (IMF, 2014).
• Strengthened fiscal discipline:
By linking departmental budgets to approved fiscal frameworks and
expenditure ceilings, budget integration supports expenditure control and
reduces the risk of overspending and fiscal imbalances (Musgrave &
Musgrave, 1989).
• Enhanced transparency and accountability:
When budgets are integrated with performance plans and reporting systems,
it becomes easier to track how public funds are spent and to assess whether
government institutions achieve their intended outcomes (Stiglitz, 2000).
• Improved service delivery and developmental impact:
Integrated budgeting enables government departments to plan realistically,
allocate resources strategically, and deliver services more effectively, thereby
improving public trust and developmental outcomes (National Treasury,
2022).
1.2 Discuss How Fiscal Policies Influence Budget Integration in the Public
Sector
Fiscal policy plays a central role in influencing budget integration by providing the
macroeconomic and financial framework within which government budgets are
prepared and implemented. Fiscal policy decisions regarding taxation, public
expenditure, and borrowing directly shape the availability of resources and the
prioritisation of government programmes, thereby influencing how budgets are
integrated across the public sector (IMF, 2020).
Through fiscal policy, government determines the overall level of public spending
and revenue mobilisation, which guides departments in aligning their budgets with
national development priorities and fiscal constraints. A well-designed fiscal policy
COMPLETE ANSWERS 2025
DUE DATE: 26 JANUARY 2026
SECTION A:
1.1 Define Budget Integration and Explain Its Significance in Public Financial
Management
Budget integration refers to the systematic alignment and coordination of
government policies, strategic plans, budgeting processes, and expenditure
decisions to ensure that public resources are allocated and utilised in a coherent and
unified manner. It involves linking policy formulation, financial planning, budget
execution, and performance management into a single public financial management
framework, rather than treating these processes as separate or fragmented activities
(Allen et al., 2004; National Treasury, 2022).
In public financial management, budget integration ensures that budgeting is not
merely an accounting exercise, but a strategic tool that translates government
priorities into funded programmes and measurable outcomes. By integrating
planning and budgeting, governments are able to ensure that financial decisions
directly support policy objectives and service delivery commitments (World Bank,
2018).
The significance of budget integration in public financial management can be
explained as follows:
• Alignment between policy priorities and financial resources:
Budget integration ensures that government policies and strategic objectives
are adequately funded, thereby reducing the common gap between policy
formulation and implementation (OECD, 2019).
, • Efficient and effective use of public funds:
Integrated budgeting minimises duplication of programmes and fragmented
spending across departments, promoting efficiency and better value for
money in the use of scarce public resources (IMF, 2014).
• Strengthened fiscal discipline:
By linking departmental budgets to approved fiscal frameworks and
expenditure ceilings, budget integration supports expenditure control and
reduces the risk of overspending and fiscal imbalances (Musgrave &
Musgrave, 1989).
• Enhanced transparency and accountability:
When budgets are integrated with performance plans and reporting systems,
it becomes easier to track how public funds are spent and to assess whether
government institutions achieve their intended outcomes (Stiglitz, 2000).
• Improved service delivery and developmental impact:
Integrated budgeting enables government departments to plan realistically,
allocate resources strategically, and deliver services more effectively, thereby
improving public trust and developmental outcomes (National Treasury,
2022).
1.2 Discuss How Fiscal Policies Influence Budget Integration in the Public
Sector
Fiscal policy plays a central role in influencing budget integration by providing the
macroeconomic and financial framework within which government budgets are
prepared and implemented. Fiscal policy decisions regarding taxation, public
expenditure, and borrowing directly shape the availability of resources and the
prioritisation of government programmes, thereby influencing how budgets are
integrated across the public sector (IMF, 2020).
Through fiscal policy, government determines the overall level of public spending
and revenue mobilisation, which guides departments in aligning their budgets with
national development priorities and fiscal constraints. A well-designed fiscal policy
