Professional Documents
Culture Documents
1.WHAT IS BUDGET? 2.OBJECTIVE & MOTIVE BUDGET 3.POLICY OF BUDGET 4.BUDGETS ISSUE. 5.THE IMPLEMENT OF BUDGET. 6.TYPE OF BUDGET 7.IMPACT OF BUDGET
of what will happen financially if certain strategies and decisions are implemented. For example, if you plan to buy a new car with a bank loan, you will want to know how much the loan repayment instalments will be. This helps you to construct a financial plan which includes determining the extent of the loan that you can afford. This type of planning is very much a budgeting activity.
passed by the legislature, and approved by the chiefexecutive president. For example, only certain types of revenue may be imposed and collected.Property tax is frequently the basis for municipal and country revenues, while sales tax and/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues
expenses. In the case of the government, revenues are derived primarily from taxes . Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payment like unemployment or retirement benefits. Budgets have an economic, political and technical basis. Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. The technical element is the forecast of the likely levels of revenues and expenses. National Budget - this is when a country finds out what the government's expected income and expenditure will be for that year
expenditure of the government Provide a forecast of revenues and expenditures i.e. construct a model of how the government might perform financially and carried out the programs and activities. Enable the actual financial operation of the government stated in a monetary terms. is a legal document that is often passed by the legislature, and approved by the chief executive -or president.
1.Allocation of resources
2.Redistributive activities
3.Economic stability 4.Management of public enterprises:
revenue. Surplus budget - Income exceed expenditure. Balanced budget - income and spending are equal.
As a Policy Statement
As a Financial Planning
As a Controlling Document As a tool for Performance Measurement
a. Preparation Stage.
b. Approval Stage. c. Execution/ Implementation Stage.
d. Auditing Stage.
by the finance director, clerk's office, budget director, manager, or a team. Budget Call issued to outline the presentation form, recommend certain goals. Budget Formulation reflecting on the past, set goals for the future and reconcile the difference. Budget Hearings can include departments, sections, the executive, and the public to discuss changes in the budget. Budget Adoption final approval by the legislative body. Budget Execution amending the budget as the fiscal year progresses.
expenditures of the government. 2. To control inflation and recession. 3. To develop the economy of the country. 4. To develop the human resource of the country. 5. To create a balance and progressive society
A good budget. Is the financial plan of the government- timely and accurately. Specific purpose- has clear defined objectives and action plans. Has time frame or time limit @ limited time period. Has estimate expenditures and revenues of a certain project or programme.