THE INTERDEPENDENCE OF PLANNING, PROGRAMMING AND BUDGETING

Abstract

Planning is a significant process function and counterpoises a very complex,
dynamic and specific activity, which means that its subject consists of all forms of social
activity, activities and life. Planning and programming are equally important to all
entities regardless of their size and goals, as they all have experienced painful problems
with their planning efforts. Some emerge from the planning process itself, and some
from the implementing procedure. Therefore the question arises: „How to help overcome
failures in planning from failures in implementation?” Hence, the management team
has no choice regarding the question: “Do they want to plan or not?” The sole alternative
is to carry out the planning completely, pragmatically and systematically. On
the other hand, programming connects planning with budgeting and execution, and
counterpoises a sort of rational assumption to “turn” plans from adopted plans into programs,
that is, projects and activities across main accounting categories, in accordance
with the desired capabilities and priorities. The analysis of the entire matter processed
in this paper is carried out in a very specific way through the prism of identifying not
only the problems related to planning, programming and budgeting, but also making
a scientific contribution to the foundation of this rather significant conditionality and
interdependence.