Government Budgeting

Description of the budget

The word ‘budget’ is derived from the French word, Bougette, which means a leather wallet or purse.Therefore, the term modern budget refers to a document that contains estimates of revenue and expenditure of a country, usually for one year.

Types of Budget

Budgets can be categorized based on the following principles:

1. Combined time.
2. Number of budget’s tabled in the legislature.
3. The overall finance budget’s position is presented in the budget.
4. An approved policy on the takeover of revenue and expenditure in the budget.

Division of receipts and expenses in the budget.

Based on these principles budget’s can be:(Annual budget’s or long-term budget’s.

1. One or more budget’s.
2. Excess budget’s, deficits or estimates.
3. Budget or revenue budget.
4. Departmental budget or operating budget.

A brief description of the different types is as follows

1. ANNUAL or long-term budget’s

Generally, Government budget’s are for one year that is, for one year. In India, England and many other commonwealth countries the financial year, starts on April 1 and ends on March 31, but in the U.S.A., Australia, Sweden and Italy the dates are 1st July and 30th June. Some countries adopt a planned economic policy and meet the requirements for long-term planning, using a long-term budget, that is, preparing a budget for three years or more. Such a budget is a long-term plan rather than a long-term budget because what is offered is a financial plan over the years to fund the program.These countries spread the use of program costs over many years. The legislature approves the plan and estimates its costs, but that does not equal the actual voting of all-time shares. Every year, the national budget will include expenditure on a plan for that year, to be approved by the legislature.

2. One or more budget’s

When the estimates of all Government functions are allocated to a single budget, it is known as a single budget. The advantage of a single budget is that it reflects the financpractisetion of the Government as a whole.But if there are separate budget-related budget’s passed by the legislature, it is called a mass budget. In India, we have two budget’s — one for the railway line and one for the rest of the departments. The practice of having a separate train budget began in 1921. In England, there is one budget.

3. Extra income, deficit or limited budget

A budget is a surplus if the estimated income exceeds the estimated cost/expense But if the expected revenue falls below the expected cost, it becomes a budget deficit. According to economists, a deficit budget is a sign of global development. A limited budget is when the expected revenue is equal to the expected cost/expense. Budgets are often in short supply.

4. Income or budget of income

A budget is one in which the estimates of various items of income and expenditure include amounts to be acquired or used in one year,.In revenue and expenditure budget’s, accumulated in one financial year,, are planned for that financial year, regardless of whether the revenue is available or expenses incurred in that financial year,. In India, Britain and the U.S.A., counts are calculated, in France and other continents, counting income.

5. Departmental or operational budget

The current practice is to have a departmental budget, that is, the revenue and expenses of one department are organized under it. It does not provide any information about the work or activity that has been budgeted for. The operating budget is another where the total cost of a particular project is compiled under the head of a specific program.It is organized into activities, programs, activities and projects, for example, in the case of collaboration (employment), it will be divided into programs such as higher education, Secondary and Higher Education. Each program will be divided into activities, for example, teacher training is a task. The project is the final unit of division of labor.It symbolizes work as a major project, such as the construction of a school building. The A.R.C. proposed the adoption of a budget for all the departments and agencies of the Central and provincial governments that have managed development programs.

REFERENCE

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