Incremental budgeting: A test of the model

Abstract

This research focuses on Budgetary behavior in a large industrial state in order to challenge the assumed incrementalism in public budgeting. It distinguishes between the overall budgetary pattern which is kept from fluctuating in order to avoid sudden tax increases and agency budgets which fluctuate substantially even in times of overall stability in order to accommodate special cases and changing Priorities. It concludes that although dominated by incremental thinking and bargaining, agency budgets do not conform to the incremental model nor does reality uphold the working assumption that starting from current spending necessarily yields small increments.