Budgeting and budget planning in higher education are considered, and the long-standing debate concerning whether budgeting is largely a technical or a political exercise is reviewed in this monograph. The roles of various participants in the budgeting process and the form of their participation, with emphasis on centralization of authority in the budgetary process, are analyzed, and the problem of equity, or allocation of similar resources for similar needs, is explained. The roles of various types of information, particularly that pertaining to the costs and outcomes of the educational experience in budgetary decision-making, and the burdens of information reporting are discussed. The heritage of current budget-planning approaches in postsecondary education is traced. The approaches to budgeting in private industry and the development of budgeting practice in the public sector during this century are considered. Problems associated with budgeting in postsecondary education and the influence of the business and public-administration approaches are discussed. The following five budget-planning approaches are described in detail: incremental budgeting, formula budgeting, program budgeting, zero-base budgeting, and performance budgeting. An analysis of budgeting roles and responsibilities existing at different organizational levels is presented. Budget-request strategies and budgeting review techniques are considered. Recommendations for further research are offered, and a bibliography is included. (SW)