What is budgetary control in public sector financial management?

Budgetary control in public sector financial management refers to a systematic approach used to monitor and evaluate the financial performance of an organization by comparing actual results against the budgeted figures. This process involves ongoing assessment of expenditures and revenues in relation to the budget established for a given period, allowing organizations to identify variances and take corrective actions as necessary.

The purpose of budgetary control is to ensure that financial resources are utilized efficiently and effectively, aligning with the established objectives and goals of the public sector entity. By regularly reviewing financial outcomes, management can make informed decisions aimed at improving financial stability and accountability in the use of public funds.

This approach is essential for sound financial governance, as it enables organizations to keep track of their financial health, assess whether they are living within their means, and adjust plans based on actual performance.