Abstract
This paper is to propose an incentive system to make government budget more efficient. It is usually said that bureaucratic behavior and incomplete transmission of voters' preferences to policy makers bring about status quo bias and incremental budget formation which lead to excessive government spendings. The incentive system proposed here can resolve both problems. The system is workable when a government has multi-sectoral bureaucratic organization and each sector's budget share has a crucial meaning for bureaucrats. Under these conditions there can be an incentive compatible equilibrium of direct negotiation among the bureaucratic sectors on budget allocation to each sector, which is less expensive and preferable for voters.
