A Simple Guide to Working with Finances in Education - Tanzania ...

3. Introduction to Budget SystemsThe overall budget is made up of the system, the policy and the outcomes. They canbe thought of like this:Budget SystemBudget PolicyBudget OutcomesThe system bywhich resources arecollected, allocated,recorded, monitoredand accounted for.A good budget system willproduce good budgetpolicy. This is the overalleffect of the annualallocation of resources.This will ensure that totalspending is affordable, thatresources are spent onpriorities and are spentwell not wasted oninefficiency and corruption• How much money isspent?• On what is it spent?• How well is it spent?The budget system is like the rules of the game. Transparency and accountability canbe the way to check that the rules are being followed. They only work if peopleparticipate in budget processes, but people cannot participate unless they know thesystem and the rules and what is meant to be happening. If this is achieved you havean ‘open budget’. It is like a cooking pot resting on three strong stones, and the threestones are participation, transparency and accountability.10