What role does a strategic plan play in the budget process?

A strategic plan is integral to the budget process as it establishes a framework that clarifies the organization's goals, priorities, and objectives. By articulating these elements clearly, a strategic plan guides the allocation of resources and helps ensure that financial decisions align with the overarching mission and values of the organization. This alignment is crucial in governmental budgeting, as it helps prioritize funding towards initiatives that advance policy goals and enhance public service delivery.

The formulation of the budget based on a strategic plan ensures that every expenditure is intentional and supports the defined objectives. This helps stakeholders understand how proposed spending connects to desired outcomes, ultimately leading to more effective governance and accountability in the use of public funds.