参考答案：Difficulties in the public sectorIn the public sector, the objectives of the organisation are more difficult to define in a quantifiable way than the objectives of a private company. For example, a private company’s objectives may be to maximise profit. The meeting of this objective can then be set out in the budget by aiming for a percentage increase in sales and perhaps the cutting of various costs. If, on the other hand, the public sector organisation is a hospital, for example, then the objectives may be largely qualitative, such as ensuring that all outpatients are given an appointment within eight weeks of being referred to the hospital. This is difficult to define in a quantifiable way, and how it is actually achieved is even more difficult to define.This leads onto the next reason why budgeting is so difficult in public sector organisations. Just as objectives are difficult to define quantifiably, so too are the organisation’s outputs. In a private company the output can be measured in terms of sales revenue. There is a direct relationship between the expenditure that needs to be incurred i.e. needs to be input in order to achieve the desired level of output. In a hospital, on the other hand, it is difficult to define a quantifiable relationship between inputs and outputs. What is more easy to compare is the relationship between how much cash is available for a particular area and how much cash is actually needed. Therefore, budgeting naturally focuses on inputs alone, rather than the relationship between inputs and outputs.Finally, public sector organisations are always under pressure to show that they are offering good value for money, i.e. providing a service that is economical, efficient and effective. Therefore, they must achieve the desired results with the minimum use of resources. This, in itself, makes the budgeting process more difficult.