Abstract:

Traditionally, budgets have been prepared and approved according to a “bottom-up” approach. But nowadays, efforts to strengthen “top-down” character of the budget process have come to the fore with budget reforms. Top-down budgeting emerged in the early 1990s as a response to growing fiscal deficits experienced by OECD countries and viewed as an instrument for ensuring that the budget respects fiscal policy goals by determination of the overall and sub-expenditure ceilings. This budgeting approach, application of which continues to widespread in various countries, is shifting the balance of the budget process with the aim of ensuring that budget decisions at all stages properly reflect aggregate fiscal policy priorities and its application varies country by country. This study focused on top-down budgeting approach is a descriptive research conducted in the screening model. The aim of the study is to introduce top-down budget approach from theoratical perspective and shed lihgt on applications and effects of top-down budgeting which has become an important tool in 21st century resource management by taking samples of first applications in some OECD contries from practice perspective.

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