Revenue Forecasting In Government

Some uncertainty in forecasts.

Revenue forecasting in government. County and municipal government in north carolina introduction 293 reasons for revenue forecasting 294 improved financial management 294 strategic thinking 294 types of revenue forecasts 295 recommended process for revenue forecasting 295 step 1. Create a revenue manual 295 step 2. Departments generally treat forecasting of future spending as little more than a technical activity of limited relevance to financial management. We need to know how revenue is generated.

While we mainly focus on forecasting that informs expenditure our findings are relevant to forecasting more generally for example forecasting the benefits from new investment. Primary goal is to estimate future revenue sources. Estimate major revenue sources 296. Departments projects and programs need to funded.

Inadequate forecasting is an entrenched problem for government departments leading to poor value for money and increased costs for the taxpayer. Revenue forecasting in u. Many revenue sources in most local governments 40 60. Then develop a realistic plan to live within your means.

Local government code chapter 111 provides guidance on county. Revenue forecasting in local government dale roenigk school of government 4 slide 13 we need to first know where our revenue comes from. Revenue forecasting is key to successful budgeting in the public sector. Forecasting government revenue under these circumstances is challenging but critically important.

Forecasting in government to achieve value for money. Government officials working in ministries of finance or in revenue administrations who are charged with conducting revenue forecasts and or assessing the revenue or distributional impact of tax policy changes. Trec revenue forecasting 1 revenue forecasting principles and procedures for more reliable revenue forecasts and better budgets don elder october 2012 there is a time honored way to develop a household budget. Aids policy makers in assessing current and future tax rates.

State government s 䡲 41 as well a s to ferret out speci fi c pro ble ms wi th for ecasts th at ari se ei ther arithm eticall y or through huma n judgment. Focus most attention on largest sources. 6 summary forecasting in government to achieve value for money scope and approach 6 we examine how departments produce and use forecasts. Is unavoidable given unknowns in the development of the pandemic and the length of restrictive measures and uncertainty in the forecasts of key economic variables.

Describe the role of revenue forecasting in the budget making process.