A comparative analysis of the budget process in the Venezuelan and U.S. navies

Abstract

Budgeting is the process by which public expenditure decision are made. Budgetary procedures involve: formulation and transmittal, congressional action, and execution and auditing. In the United States, as in Venezuela, the formulation procedure is initiated by the executive branch, but during the congressional process the executive formulation may be altered. Enforcement of budgetary requirements lie with the executive branch and the Comptroller General. In the United States Department of Defense, the Planning, Programming and Budgeting System (PPBS) was developed to facilitate budgeting in terms of military forces. The U.S. Navy summarizes the concept of PPBS as follows: in response to an appraised threat a strategy is developed; in support of this strategy force requirements are developed; based on these requirements programs are developed to provide ships, aircraft, weapon systems and manpower over a period of time. The Venezuelan Armed Force has developed a PPBS, which is quite similar to that which exists in the U.S., but the two systems are not the same because of philosophical differences between the two countries. Complete implementation of the Venezuelan PPBS is progressing slowly because of many barriers; these include; lack of well-trained personnel, the hesitancy of personnel to adopt a new system, and frequent changes in political policy.