So, even though zero-base budgeting is a fraud, and even though the good parts of it are not new, experienced budget people should not let the phrase make them nauseous. They should disregard the rhetoric and latch onto the term as a way of accomplishing what really needs to be accomplished anyway.
Source: Wall Street Journal (Apr. 27, 1977). Reprinted by permission of the Wall Street Journal, 1977 Dow Jones & Company, Inc. All Rights Reserved Worldwide.
APPENDIX 5-1 THE FEDERAL FUNCTIONAL CLASSIFICATION
The functional classification arranges budget resources so that budget authority and outlays, loan guarantees, and tax expenditures can be related to the national need they address. The congressional budget resolutions establish budget targets for each function.
According to the Budget of the U.S. Government, Fiscal Year 1986, these criteria are used in assigning activities to functions:
A function must have a common end or ultimate purpose addressed to an important national need. (The emphasis is on what the federal government seeks to accomplish rather than the means of accomplishment, what is purchased, or the clientele or geographic area served.)
A function must be of continuing national important and the amounts attributable to it must be significant.
Each basic unit of classification (generally the appropriation or fund account) is classified into the single best or predominant purpose and assigned to only one subfunction. However, when an account is large and serves more than one major purpose, it may be subdivided into two or more subfunctions.
Activities and programs are normally classified according to their primary purpose. (or function) regardless of which agencies conduct the activities.
The following material presents the functional classifications, associated descriptions, and programs and departments in the functions.
Functional Classification Codes and Program Categories
FUNCTION 050: NATIONAL DEFENSE
051: Department of Defense-Military
053: Atomic Energy Defense Activities
054: Defense-Related Activities
Description of Function:
Funds in this function are provided to develop, maintain, and equip the military forces of the United States, and to finance defense-related activities of the Department of Energy Major areas of