Which statement best describes a Line-Item Budget?

• A. A budget format grouping departmental outlays by items with one item per line; least effective for policy focus
• B. A budget that links planning, programming, and budgeting into a single framework
• C. A budget that ranks programs by importance
• D. A flexible budgeting approach based on outcomes

Answer: (A)

Line-item budgeting centers on expenditures listed as individual line items, with each line showing a specific cost such as salaries, supplies, or equipment. This format groups spending by item and department, emphasizing what is spent rather than what is accomplished. Because it ties money to inputs rather than to programs or outcomes, it is less helpful for shaping policy or assessing impact, which is why this description fits a line-item budget best. The other descriptions describe different budgeting approaches: linking planning, programming, and budgeting describes PPBS; ranking programs by importance describes program budgeting; and budgeting based on outcomes describes a performance or outcome-based approach.