Theory of Budget

Denotes A

the word appropriation or allocation

detailed financial program in which anticipated expenditures and revenues, including receipts from borrowings are itemized and exactly balanced
A

major tool for planning, motivating and controlling business operations is the financial plan of the government designed to accomplish its political, economic, and social objectives and administrative policies.a

It

When do we prepare a Budget?

PLANNING

It enables the government administrator to foresee his needs for the resources of the organization and to express his plans for these needs wherein the budget translates the objectives and enables the administrator to express priorities, time schedule, contingencies, and completion dates

CONTROL

Budget governs the rate of spending for personnel, materials, and supplies in conformity with the organization s plan

> Budget determines better ways for meeting the objectives in the future

OPERATING EXPEN ITURES

CAPITAL EXPE DITURES

includes provision for personal services and maintenance and other operating expenses

Includes provision for acquisition of land, building and equipment, major renovation for existing facilities