Incremental Thinking: "The Lack of a Budgetary Theory"

Editor's Note: More than 40 years ago. V.O. Key identified the basic budgeting question as: ”On what basis shall it be decided to allocate x dollars to activity A instead of activity B?“ Despite decades of budgetary research and innovation, the question remains unanswered and probably unanswerable. As Key recognized, a solution to this problem would constitute a full-blown theory of government. Although neither Key nor others have provided a firm answer to this basic question. Key's article is a valuable reminder that budgeting is much more than technique. This lesson is immediately forgotten when the latest reform comes to market promising a neat formula for dividing the budget pie. The lesson is relearned again when administrative and political pathologists seek cause and effect for the failure of the most recent promising innovation.