Budgeting for Objectives (BFO)

Instead of starting with the previous year's budget and justifying incremental changes, BFO starts by asking what results matter most to citizens.

The Government Finance Officers Association outlines the steps in budgeting for objectives as follows:
1.ı Determine how much money is available.
2.ı Prioritize the results.
3.ı Allocate resources among high priority results.
4.ı Conduct analysis to determine what strategies, programs, and activities will best achieve the desired results.
5.ı Budget available dollars to the most significant programs and activities.
6.ı Set measures of annual progress, monitor, and close the feedback loop.
7.ı Check what actually happened.