Government spending or expenditure includes all government consumption and transfer payments. In national income accounting the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment; these two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product. Government spending can be financed by taxes. Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle. Government spending can be a useful economic policy tool for governments. Fiscal policy can be defined as the use of government spending and/or taxation as a mechanism to influence an economy.
There are two types of fiscal policy: expansionary fiscal policy, contractionary fiscal policy. Expansionary fiscal policy is an increase in government spending or a decrease in taxation, while contractionary fiscal policy is a decrease in government spending or an increase in taxes. Expansionary fiscal policy can be used by governments to stimulate the economy during a recession. For example, an increase in government spending directly increases demand for goods and services, which can help increase output and employment. On the other hand, contractionary fiscal policy can be used by governments to cool down the economy during an economic boom. A decrease in government spending can help keep inflation in check. During economic downturns, in the short run, government spending can be changed either via automatic stabilization or discretionary stabilization. Automatic stabilization is when existing policies automatically change government spending or taxes in response to economic changes, without the additional passage of laws.
A primary example of an automatic stabilizer is unemployment insurance, which provides financial assistance to unemployed workers. Discretionary stabilization is when a government takes actions to change government spending or taxes in direct response to changes in the economy. For instance, a government may decide to increase government spending as a result of a recession. With discretionary stabilization, the government must pass a new law to make changes in government spending. John Maynard Keynes was one of the first economists to advocate for government deficit spending as part of the fiscal policy response to an economic contraction. According to Keynesian economics, increased government spending raises aggregate demand and increases consumption, which leads to increased production and faster recovery from recessions. Classical economists, on the other hand, believe that increased government spending exacerbates an economic contraction by shifting resources from the private sector, which they consider productive, to the public sector, which they consider unproductive.
In economics, the potential "shifting" in resources from the private sector to the public sector as a result of an increase in government deficit spending is called crowding out. The figure to the right depicts the market for capital, otherwise known as the market for loanable funds; the downward sloping demand curve D1 represents demand for private capital by firms and investors, the upward sloping supply curve S1 represents savings by private individuals. The initial equilibrium in this market is represented by point A, where the equilibrium quantity of capital is K1 and the equilibrium interest rate is R1. If the government increases deficit spending, it will borrow money from the private capital market and reduce the supply of savings to S2; the new equilibrium is at point B, where the interest rate has increased to R2 and the quantity of capital available to the private sector has decreased to K1. The government has made borrowing more expensive and has taken away savings from the market, which "crowds out" some private investment.
The crowding out of private investment could limit the economic growth from the initial increase government spending. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is called government final consumption expenditure It is a purchase from the national accounts "use of income account" for goods and services directly satisfying of individual needs or collective needs of members of the community. GFCE consists of the value of the goods and services produced by the government itself other than own-account capital formation and sales and of purchases by the government of goods and services produced by market producers that are supplied to households—without any transformation—as "social transfers" in kind; the United States spends vastly more than other countries on national defense. The table below shows the top 10 countries with largest military expenditures as of 2015, the most recent year with publicly available data.
As the table suggests, the United States spent nearly 3 times as much on the military than China, the country with the next largest military spending. The U. S. military budget dwarfed spending by all other countries in the top 10, with 8 out of countries spending less than $100 billion in 2016. Research Australia found 91% of Australians think ‘improving hospitals and the health system’ should be the Australian Government’s first spending priority. Crowding'in' happens in university life science research Subsidies and government business or projects like this are justified on the ba
A town meeting is a form of direct democratic rule, used in portions of the United States – principally in New England – since the 17th century, in which most or all the members of a community come together to legislate policy and budgets for local government. This is a town- or city-level meeting where decisions are made, in contrast with town hall meetings held by state and national politicians to answer questions from their constituents, which have no decision-making power. Town meeting is a form of local government practiced in the U. S. region of New England since colonial times, in some western states since at least the late 19th century. Conducted by New England towns, town meeting can refer to meetings of other governmental bodies, such as school districts or water districts. While the uses and laws vary from state to state, the general form is for residents of the town or school district to gather once a year and act as a legislative body, voting on operating budgets and other matters for the community's operation over the following 12 months.
In 1854, Henry David Thoreau said, in a speech entitled "Slavery in Massachusetts": When, in some obscure country town, the farmers come together to a special town-meeting, to express their opinion on some subject, vexing the land, that, I think, is the true Congress, the most respectable one, assembled in the United States. The painting Freedom of Speech depicts a scene from a town meeting; the Puritans, whose churches used the Congregationalist church governance sysytem, established town meetings when they established the various New England colonies. Its usage in the English language can cause confusion, since it is both an event, as in "Freetown had its town meeting last Tuesday", an entity, as in "Last Tuesday, Town Meeting decided to repave Howland Road." In modern times, "town meeting" has been used by political groups and political candidates as a label for moderated discussion group in which a large audience is invited. To avoid confusion, this sort of event is called a "town hall meeting."
Connecticut town meetings are bound to a published agenda. For example, in Connecticut, a Town Meeting may discuss, but not alter, an article placed before them, nor may they place new items on the agenda. If a Town Meeting rejects a budget, a new Town Meeting must be called to consider the next proposed budget. State Law allows the Board of Selectmen to adopt an estimated tax rate and continue operating based on the previous budget in the event a Town Meeting has not adopted a new budget in time, they do not exercise the scope of legislative powers as is seen in Massachusetts. A moderator is chosen at each meeting. Meetings are held in school auditoriums, however they may be moved to larger venues as needed. Town meetings can physically meet in another town if necessary to find a proper space to host the attendance. Votes are taken by voice, if close by show of hands. Meetings on controversial topics are adjourned to a referendum conducted by machine vote on a date in the future; such adjournment may come from the floor of the meeting, or by a petition for a paper or machine ballot filed before the meeting.
In towns with an Open Town Meeting, all registered voters of a town, all persons owning at least $1,000 of taxable property, are eligible to participate in and vote at Town Meetings, with the exception of the election of officials. Representative Town Meetings used by some larger towns consist of a large number of members elected to office; some towns utilize a so-called Financial Town Meeting, where an Open Town Meeting exists with limited jurisdiction to only vote on financial affairs and the town's legislative powers have been vested in a Town Council. In Maine, the town meeting system originated during the period when Maine was a district of Massachusetts. Most cities and towns operate under a modified version of it. Maine annual town meetings traditionally are held in March. Special town meetings may be called from time to time; the executive agency of town government is an elected, part-time board, known as the Board of Selectmen or Select Board, having three, five, or seven members. Between sessions, the board of selectmen interprets the policy set at Town Meeting and is assigned numerous duties including: approving all town non-school expenditures, authorizing highway construction and repair, serving as town purchasing agent for non-school items, issuing licenses, overseeing the conduct of all town activities.
The part-time selectmen serve as town assessors, overseers of the poor, as road commissioners. There are other elected town officers whose duties are specified by law; these may include clerks, tax collector, school committee and others. In 1927 the town of Camden adopted a special charter, became the first Maine town to apply the manager concept to the town meeting-selectmen framework. Under this system, the manager is administrative head of town government, responsible to the select board for the administration of all departments under its control; the manager's duties include acting as purchasing agent, seeing that laws and ordinances are enforced, making appointments and removals, fixing the compensation of appointees. From 1927 to 1939, eleven other Maine towns adopted special act town meeting-selectmen-
A budget is a financial plan for a defined period one year. It may include planned sales volumes and revenues, resource quantities and expenses, assets and cash flows. Companies, governments and other organizations use it to express strategic plans of activities or events in measurable terms. A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them, it may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed income. A budget is a quantified financial plan for a forthcoming accounting period. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting tools: Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies and plans are carried out.
Tools enable the actual financial operation of the business to be measured against the forecast. Lastly, tools establish the cost constraint for program, or operation; the budget of a company is compiled annually, but may not be a finished budget requiring considerable effort, is a plan for the short-term future allows hundreds or thousands of people in various departments to list their expected revenues and expenses in the final budget. If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an'out of control' signal, the share price could suffer. Campaign planners incur two types of cost in any campaign: the first is the cost of human resource necessary to plan and execute the campaign; the second type of expense that campaign planners incur is the hard cost of the campaign itself.
A budget is a fundamental tool for an event director to predict with a reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can be used as a pricing tool. There are two basic philosophies, when it comes to budgeting. One approach is telling you on mathematical models, the other on people; the first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are held in some type of financial spreadsheet application; the other school of thought holds that it's not about models, it's about people. No matter how sophisticated models can get, the best information comes from the people in the business; the focus is therefore in engaging the managers in the business more in the budget process, building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets.
While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other. The budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget: the operating or current budget, the capital or investment budget, the cash or cash flow budget; the budget is prepared by the Treasury team led by the Chancellor of the Exchequer and is presented to Parliament by the Chancellor of the Exchequer on Budget Day. It is customary for the Chancellor to stand on the steps of Number 11 Downing Street with his or her team for the media to get photographic shots of the Despatch Box prior to them going to the House of Commons. Once presented in the House of Commons it is debated and voted on. Minor changes may be made however with the budget being written and presented by the party with the majority in the House of Commons, the Whips will ensure that it is passed as written by the Chancellor.
The federal budget is prepared by the Office of Management and Budget, submitted to Congress for consideration. Invariably, Congress makes substantial changes. Nearly all American states are required to have balanced budgets, but the federal government is allowed to run deficits; the budget is prepared by the Budget Division Department of Economic Affairs of the Ministry of Finance annually. The Finance Minister is the head of the budget making committee; the present Indian Finance minister is Arun Jaitley. The Budget includes supplementary excess grants and when a proclamation by the President as to failure of Constitutional machinery is in operation in relation to a State or a Union Territory, preparation of the Budget of such State; the first budget of India was submitted on 18 February 1869 by James Wilson. James Wilson is known as the father of Indian budget; the Philippine budget is considered the most complicated in the world, incorporating multiple approaches in one single budget system: line-item and zero-based budgeting.
The Department of Budget and Management prepares the National Expenditure Program and forwards it to the Committee on Appropriations of the House of Representatives to come up with a General Appropriations Bill. The GAB will go through voting. After both houses of Congress approves the GAB, the Presid
A municipality is a single administrative division having corporate status and powers of self-government or jurisdiction as granted by national and regional laws to which it is subordinate. It is to be distinguished from the county, which may encompass rural territory or numerous small communities such as towns and hamlets; the term municipality may mean the governing or ruling body of a given municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district; the term is derived from French Latin municipalis. The English word municipality derives from the Latin social contract municipium, referring to the Latin communities that supplied Rome with troops in exchange for their own incorporation into the Roman state while permitting the communities to retain their own local governments. A municipality can be any political jurisdiction from a sovereign state, such as the Principality of Monaco, to a small village, such as West Hampton Dunes, New York.
The territory over which a municipality has jurisdiction may encompass only one populated place such as a city, town, or village several of such places only parts of such places, sometimes boroughs of a city such as the 34 municipalities of Santiago, Chile. Powers of municipalities range from virtual autonomy to complete subordination to the state. Municipalities may have the right to tax individuals and corporations with income tax, property tax, corporate income tax, but may receive substantial funding from the state. In various countries, municipalities are referred to as "communes", notably in Romance languages such as French commune, Italian comune, Romanian comună, Spanish comuna, in Germanic languages such as German Kommune, Swedish kommun, Faroese kommuna, Norwegian, Danish kommune. However, in Moldova and Romania exist both municipalities and communes, a commune may be part of a municipality. Similar terms include Spanish ayuntamiento called municipalidad, Polish gmina, Dutch/Flemish Gemeente and Luxembourgish Gemeng.
In Australia, the term local government area is used in place of the generic municipality. Here, the "LGA Structure covers only incorporated areas of Australia. Incorporated areas are designated parts of states and territories over which incorporated local governing bodies have responsibility." In Canada, municipalities are local governments established through provincial and territorial legislation within general municipal statutes. Types of municipalities within Canada include cities, district municipalities, municipal districts, parishes, rural municipalities, townships and villes among others; the Province of Ontario has different tiers of municipalities, including lower and single tiers. Types of upper tier municipalities in Ontario include regional municipalities. Nova Scotia has regional municipalities, which include cities, districts, or towns as municipal units. In India, a Municipality or Nagar Palika is an urban local body that administers a city of population 100,000 or more. However, there are exceptions to that, as Municipality were constituted in urban centers with population over 20,000, so all the urban bodies which were classified as Municipality were reclassified as Municipality if their population was under 100,000.
Under the Panchayati Raj system, it interacts directly with the state government, though it is administratively part of the district it is located in. Smaller district cities and bigger towns have a Municipality. Municipality are a form of local self-government entrusted with some duties and responsibilities, as enshrined in the Constitutional Act,1992. In the United Kingdom, the term was used until the 1972 Local Government Act came into effect in 1974 in England and Wales, until 1975 in Scotland and 1976 in Northern Ireland, "both for a city or town, organized for self-government under a municipal corporation, for the governing body itself; such a corporation in Great Britain consists of a head as a mayor or provost, of superior members, as aldermen and councillors". Since local government reorganisation, the unit in England, Northern Ireland and Wales is known as a district, in Scotland as a council area. A district can retain its district title. In Jersey, a municipality refers to the honorary officials elected to run each of the 12 parishes into which it is subdivided.
This is the highest level of regional government in this jurisdiction. In Trinidad and Tobago, "municipality" is understood as a city, town, or other local government unit, formed by municipal charter from the state as a municipal corporation. A town may be awarded borough status and on may be upgraded to city status. Chaguanas, San Fernando, Port of Spain and Point Fortin are the 5 current municipalities in Trinidad and Tobago. In the United States, "municipality" is understood as a city, village, or other local government unit, formed by municipal charter from the state as a municipal corporation. In a state law contex
A city council, town council, town board, or board of aldermen is the legislative body that governs a city, municipality, or local government area. Because of the differences in legislation between the states, the exact definition of a City Council varies. However, it is only those local government areas which have been granted city status that are entitled to refer to themselves as cities; the official title is "Corporation of the City of ______" or similar. Some of the urban areas of Australia are governed by a single entity, while others may be controlled by a multitude of much smaller city councils; some significant urban areas can be under the jurisdiction of otherwise rural local governments. Periodic re-alignments of boundaries attempt to rationalize these situations and adjust the deployment of assets and resources; the 2001 Local Government Act restyled the five county boroughs of Dublin, Galway and Limerick as city councils, with the same status in law as county councils. The 2014 Local Government Act Merged Limerick City and Limerick County Council together and Waterford City and Waterford County Council together abolishing Waterford and Limerick City council, While Limerick and Waterford maintain City Status.
The city councils and city halls in Malaysia are as follows. Alor Setar City Council Ipoh City Council Iskandar Puteri City Council Johor Bahru City Council Kota Kinabalu City Hall Kuala Lumpur City Hall Kuala Terengganu City Council Kuching North City Hall Kuching South City Council Melaka City Council Miri City Council Penang Island City Council Petaling Jaya City Council Shah Alam City Council Local councils in New Zealand do vary in structure, but are overseen by the government department Local Government New Zealand. For many decades until the local government reforms of 1989, a borough with more than 20,000 people could be proclaimed a city; the boundaries of councils tended to follow the edge of the built-up area, so little distinction was made between the urban area and the local government area. New Zealand's local government structural arrangements were reformed by the Local Government Commission in 1989 when 700 councils and special purpose bodies were amalgamated to create 87 new local authorities.
As a result, the term "city" began to take on two meanings. The word "city" came to be used in a less formal sense to describe major urban areas independent of local body boundaries; this informal usage is jealously guarded. Gisborne, for example, adamantly described itself as the first city in the world to see the new millennium. Gisborne is administered by a district council, but its status as a city is not disputed. Under the current law the minimum population for a new city is 50,000. In the Republic of China, a city council represents a provincial city. Members of the councils are elected through local elections for provincial cities which are held every 4–5 years. Councils for the provincial cities in Taiwan are Chiayi City Council, Hsinchu City Council, Keelung City Council. In the UK, not all cities have city councils, the status and functions of city councils vary. A city council may be: The council of a metropolitan district, granted city status; the council of a non-metropolitan district, granted city status.
Some of these councils are some share functions with county councils. A parish council, granted city status; these councils have limited functions. The council of a London borough, granted city status, or the City of London Corporation. A city council may be: One of the three councils of principal areas that have been granted city status. One of the three community councils, with limited functions, that have been granted city status. A city council is the council of one of four council areas designated a City by the Local Government etc. Act 1994; the three cities which are not council areas have no city council. Belfast City Council is now the only city council. Since the local government reforms of 2015 the other four cities form parts of wider districts and do not have their own councils. City councils and town boards consist of several elected aldermen or councillors. In the United States, members of city councils are called council member, council man, council woman, councilman, or councilwoman, while in Canada they are called councillor.
In some cities, the mayor is a voting member of the council. In larger cities the council may elect other executive positions as well, such as a council president and speaker; the council functions as a parliamentary or congressional style legislative body, proposing bills, holding votes, passing laws to help govern the city. The role of the mayor in the council varies depending on whether or not the city uses council–manager government or mayor–council government, by the nature of the statutory authority given to it by state law, city charter, or municipal ordinance. There is a mayor pro tem councilmember. In cities where the council elects the mayor for one year at a time, the mayor pro tem is in line to become the mayor in the next year. In cities where the mayor is elected by the city's voters, the mayor pro tem serves as acting mayor in the absence of the mayor; this position is known as vice mayor. In some cities a different name for the municipal legislature is used. In San
Infrastructure is the fundamental facilities and systems serving a country, city, or other area, including the services and facilities necessary for its economy to function. Infrastructure is composed of public and private physical improvements such as roads, tunnels, water supply, electrical grids, telecommunications. In general, it has been defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions". There are two general types of ways to view infrastructure, soft. Hard infrastructure refers to the physical networks necessary for the functioning of a modern industry; this includes roads, railways, etc. Soft infrastructure refers to all the institutions that maintain the economic, health and cultural standards of a country; this includes educational programs, official statistics and recreational facilities, law enforcement agencies, emergency services. The word infrastructure has been used in English since 1887 and in French since 1875 meaning "The installations that form the basis for any operation or system".
The word was imported from French, where it means subgrade, the native material underneath a constructed pavement or railway. The word is a combination of the Latin prefix "infra", meaning "below" and many of these constructions are underground, for example, tunnels and gas systems, railways; the army use of the term achieved currency in the United States after the formation of NATO in the 1940s, by 1970 was adopted by urban planners in its modern civilian sense. A 1987 US National Research Council panel adopted the term "public works infrastructure", referring to: "... both specific functional modes – highways, streets and bridges. A comprehension of infrastructure spans not only these public works facilities, but the operating procedures, management practices, development policies that interact together with societal demand and the physical world to facilitate the transport of people and goods, provision of water for drinking and a variety of other uses, safe disposal of society's waste products, provision of energy where it is needed, transmission of information within and between communities."
The American Society of Civil Engineers publish a "Infrastructure Report Card" which represents the organizations opinion on the condition of various infrastructure every 2–4 years. As of 2017 they grade 16 categories, namely Aviation, Dams, Drinking Water, Hazardous Waste, Inland Waterways, Parks & Recreation, Rail, Schools, Solid Waste and Wastewater. A way to embody personal infrastructure is to think of it in term of human capital. Human capital is defined by the Encyclopedia Britannica as “intangible collective resources possessed by individuals and groups within a given population"; the goal of personal infrastructure is to determine the quality of the economic agents’ values. This results in three major tasks: the task of economic proxies’ in the economic process. Institutional infrastructure branches from the term "economic constitution". According to Gianpiero Torrisi, Institutional infrastructure is the object of economic and legal policy, it compromises the grown and sets norms. It refers to the degree of actual equal treatment of equal economic data and determines the framework within which economic agents may formulate their own economic plans and carry them out in co-operation with others.
Material infrastructure is defined as “those immobile, non-circulating capital goods that contribute to the production of infrastructure goods and services needed to satisfy basic physical and social requirements of economic agents". There are two distinct qualities of material infrastructures: 1) Fulfillment of social needs and 2) Mass production; the first characteristic deals with the basic needs of human life. The second characteristic is the non-availability of infrastructure services. According to the business dictionary, economic infrastructure can be defined as "internal facilities of a country that make business activity possible, such as communication and distribution networks, financial institutions and markets, energy supply systems". Economic infrastructure support productive events; this includes roads, bridges, water distribution networks, sewer systems, irrigation plants, etc. Social infrastructure can be broadly defined as the construction and maintenance of facilities that support social services.
Social infrastructures are created to increase social act on economic activity. These being schools and playgrounds, structures for public safety, waste disposal plants, sports area, etc. Core assets have monopolistic characteristics. Investors seeking core infrastructure look for five different characteristics: Income, Low volatility of returns, Inflation Protection, Long-term liability matching. Core Infrastructure incorporates all the main types of infrastructure. For instance. Basic infrastructure refers to main railways, canals, harbors and
Strategic planning is an organization's process of defining its strategy, or direction, making decisions on allocating its resources to pursue this strategy. It may extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management, it is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes. Strategy has many definitions, but involves setting goals, determining actions to achieve the goals, mobilizing resources to execute the actions. A strategy describes; the senior leadership of an organization is tasked with determining strategy. Strategy can be planned or can be observed as a pattern of activity as the organization adapts to its environment or competes. Strategy includes processes of implementation. However, strategic planning is analytical in nature.
As such, strategic planning occurs around the strategy formation activity. Strategic planning is a process and thus has inputs, activities and outcomes; this process, like all processes, has constraints. It may be formal or informal and is iterative, with feedback loops throughout the process; some elements of the process may be continuous and others may be executed as discrete projects with a definitive start and end during a period. Strategic planning provides inputs for strategic thinking, which guides the actual strategy formation. Typical strategic planning efforts include the evaluation of the organization's mission and strategic issues to strengthen current practices and determine the need for new programming; the end result is the organization's strategy, including a diagnosis of the environment and competitive situation, a guiding policy on what the organization intends to accomplish, key initiatives or action plans for achieving the guiding policy. Michael Porter wrote in 1980 that formulation of competitive strategy includes consideration of four key elements: Company strengths and weaknesses.
The first two elements relate to factors internal to the company, while the latter two relate to factors external to the company. These elements are considered throughout the strategic planning process. Data is gathered from a variety of sources, such as interviews with key executives, review of publicly available documents on the competition or market, primary research, industry studies, etc; this may be part of a competitive intelligence program. Inputs are gathered to help support an understanding of the competitive environment and its opportunities and risks. Other inputs include an understanding of the values of key stakeholders, such as the board and senior management; these values may be captured in an organization's mission statements. Strategic planning activities include meetings and other communication among the organization's leaders and personnel to develop a common understanding regarding the competitive environment and what the organization's response to that environment should be.
A variety of strategic planning tools may be completed as part of strategic planning activities. The organization's leaders may have a series of questions they want answered in formulating the strategy and gathering inputs, such as: What is the organization's business or interest? What is considered "value" to the customer or constituency? Which products and services should be included or excluded from the portfolio of offerings? What is the geographic scope of the organization? What differentiates the organization from its competitors in the eyes of customers and other stakeholders? Which skills and resources should be developed within the organization? The output of strategic planning includes documentation and communication describing the organization's strategy and how it should be implemented, sometimes referred to as the strategic plan; the strategy may include a diagnosis of the competitive situation, a guiding policy for achieving the organization's goals, specific action plans to be implemented.
A strategic plan may be updated periodically. The organization may use a variety of methods of measuring and monitoring progress towards the objectives and measures established, such as a balanced scorecard or strategy map. Companies may plan their financial statements for several years when developing their strategic plan, as part of the goal setting activity; the term operational budget is used to describe the expected financial performance of an organization for the upcoming year. Capital budgets often form the backbone of a strategic plan as it relates to Information and Communications Technology. Whilst the planning process produces outputs, as described above, strategy implementation or execution of the strategic plan produces Outcomes; these outcomes will invariably differ from the strategic goals. How close they are to the strategic goals and vision will determine the success or failure of the strategic plan. There will arise unintended