Which type of budget focuses on ongoing operations of government entities?

Prepare for CGFM Exam 3 - Financial Management Functions with a comprehensive suite of questions and explanations. Perfect your knowledge with flashcards and multiple-choice questions to excel in your certification exam!

The operational budget emphasizes the ongoing activities and functions of government entities. It outlines the revenue and expenditure necessary for day-to-day operations, including personnel costs, supplies, and straightforward administrative expenses. This type of budget ensures that an organization has the funds to operate effectively and deliver public services continuously.

Unlike performance budgets, which focus on the outcomes and efficiency of programs, or capital budgets, which are designed for long-term investments in physical assets, the operational budget centers on maintaining regular operations. The budget for staff training, while important, is just a component that could be funded through an operational budget but does not encompass the broader scope of ongoing operations. Therefore, the focus on routine governmental functions and the allocation of necessary resources to maintain these services makes the operational budget the correct choice.

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