Response to XXX,
I think the post makes a significant contribution to the issues of financial management and statesmanship. I agree that statesmanship plays a significant role in addressing the challenges of financial management and budgeting. The author of the post has suggested that statesmanship is essential in every step of financial management from budgeting, planning, implementation and evaluation.
To ensure equal distribution of income and efficient management of financial resources, public administrators should focus on key principles of statesmanship, ensuring that the needs and interests of the people are considered (Smith and Bempah 2017, p.117). Thus, I agree with Shipman on the idea that statesmanship should guide the entire budgeting process.
Add a Point or Two
However, budgeting can be used to implement fiscal policies as suggested by John Maynard Keynes to improve economic stability.
I think it is important sometimes to implement such fiscal policies, which may undermine the goals of statesmanship in the short run, but they help the economy to become stable in the long run. For instance, increased or decreased government spending and taxation may alter the economy of the country (Kuroki, 2013).
When the economic growth increases, it causes increased inflation and reduced unemployment. In this case, public budgeting may be required to increase government spending and reduce income in the hands of the people. Such actions may not be popular, but they help the economy to grow at a manageable rate.
Therefore, while statesmanship is needed to solve the problems of budgeting and financial management, I think the knowledge of economic principles and fiscal policy is also necessary to keep the economy at check. A balanced budget is difficult to achieve, so government control through fiscal policy is important to achieve stability in the economy.