Why Strategic Budgeting Matters More Than Fighting for Every Dollar

Right now, councils and government leaders across Australia are in the thick of budget season. They will all be fighting hard for every dollar, trimming where they must, and trying to shield what matters most. I don’t envy them!!

But this year, it feels different.

The numbers are tighter. The pressures are broader. And the sense of uncertainty is sharper than ever.

A Convergence of Financial Pressure

From rate capped councils to cash strapped agencies, nearly everyone is navigating a perfect storm of financial constraints:

• Proposed Emergency Services and Volunteers Fund is set to rip $140m from rural areas, according to Rural Councils Victoria. 
• Commonwealth Financial Assistance Grants remain frozen, a decision announced in the 2025-26 Federal Budget that’s cost councils billions in lost revenue.
• The Victorian Auditor-General’s Office recently flagged ongoing capital underspend and rising staff turnover as red flags in local government performance. 
• The Productivity Commission, Grattan Institute, and ABC investigations are demanding greater transparency in project selection and delivery.
• Even the Commonwealth Parliament Interim report into local government sustainability has now acknowledged that local government’s role is expanding while its revenue base is not. 
• The Victorian Parliament released its Inquiry into Local Government funding and services and flags costs shifting from state and federal governments to local council. 

The list goes on and on! And underneath all of it? The cost of living, the climate, export tariffs and the community expectations that don’t go away just because budgets tighten.

The Challenge is more than Money

It’s easy to think that budgeting is just about allocating dollars. But in times like these, it’s really about:

• Making the hard trade offs,
• Defending those decisions internally and externally, and
• Staying aligned with what matters most

When there’s less money and more people asking for it, good intentions and spreadsheets aren’t enough. You need strategic clarity and confidence in your prioritisation.

The Role of Strategic Budgeting

At Grantus, we often say: 

“You may not be able to increase your budget, but you can increase your confidence in how it’s used.”

That’s where Investment Logic Mapping (ILM) can come in. It can be used more than just for projects. It can be used as part of a strategic budget framework.

ILM helps leadership teams answer:

• What are we really trying to solve?
• What benefits do we want to achieve?
• What’s the smartest way to get there?

It’s not a form. It’s a tool for clarity. One that aligns your budget with strategy, your decisions with logic, and your story with funding opportunities.

A Smarter Way to Plan

In this current environment, the councils and agencies getting traction are those that can:

• Articulate their strategic problems clearly
• Demonstrate benefits, not just costs
• Say no to good ideas to focus on great ones

It’s about being investment ready for your own board, your community, and the funders who might be watching.