Budgeting in the public sector is the most diagnostic process any modern governmental body will undertake. This intricate process is how various priorities are determined upon towards allocating finances to specific public services that help benefit the individuals or constituents they represent in a local, state or federal area. The Public Sector is unique as it operates unlike the Private Sector, in which the success of the Public Sector is not necessarily to make a profit. Also, resources available are limited and depends on the total output produced by the society it governs; this is the reason for why a good budgeting plan is so imperative. Spending priorities for acquisitions and possible unexpected issues must be appropriately determined so that an efficient response is assessed in the fiscal year. A good budget should contain program expenditures on a historical and projected basis, jurisdictional comparisons with similar communities, A program theory which justifies the allocation of resources should result in a desired outcome, and public transparency of the entire budget. .
A good fiscal budget justifies each expenditure category and describes the consequences if the request for that budget aspect are not provided sufficiently or at all. It is then reviewed by a team of city or county managers and commissioners, as far as the local level is concerned. In the state and federal level, the process is more formal. The city of Miami Beach has key strategic areas of priority called Key Intended Outcomes. These KIO's are derived from extensive research in all segments of the community, business, residents, and community organizations. Furthermore, In The Miami Beach budget process, surveys were conducted every other year from 2005-2009 and 2012 with focus groups in 2006 and 2008 along with an environmental scan of pertinent demographic info, socioeconomic data, department workload and performance measures; financial trends and comparison with other cities resulted in the refinement of the city's multi-year goals.