Fiscal Planning

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6. 2. Steps Plan Non-Plan Zero Budgeting Mid- term appraisal Capital & revenue
7. 3. Limited role in determining resource allocation. Allowed only limited input Nursing as
Non Income producing service Overview of fiscal planning in nursing management
8. 4. Nursing budgets generally account for the greatest share of the total expenses in
healthcare institutions, participation in fiscal planning has become a fundamental and
powerful tool for nursing Nursing budgets generally account for the greatest share of the
total expenses in healthcare institutions, participation in fiscal planning has become a
fundamental and powerful tool for nursing In 21st century.
9. 5. Features of fiscal planning Most direct control or influence financial elements
Receive regular data reports Reflects the philosophy, goals, and objectives of the
organization Accountable for the financial results of the operating unit Responsibility
accounting Active participation in unit budgeting
10. 6. Characteristics Proactive Flexible Clearly stated in measurable terms Short- and longterm planning Involve as many people as feasible in the budgetary process Requires
vision, creativity Thorough knowledge of the political, social, and economic forces that
shape health care
11. 7. Evaluation Implementation Develop a plan Assess what needs to be covered STEPS IN
FISCAL PLANNING
12. 8. Integrating Leadership Roles And Management Functions In Fiscal Planning
Understand fiscal terminology Aware of budgetary responsibilities Maintaining cost
effective unit sensitivity to the organizations economic, social, and legislative climate
is a high-level management function Skillful in the monitoring aspects of budget
control

13. 9. Leadership skills Flexibility Creativity Vision regarding future needs

Anticipate budget constraints Act proactively Identifying alternatives Cost
containment does not jeopardize patient safety
14. 10. Components of expenditure Plan Non- plan
15. 11. Received funds Plan funds Non plan funds Extra budgetary resources
16. 12. Zero based budgeting A method of budgeting in which all expenses must be justified
for each new period. Zero-based budgeting starts from a "zero base" and every function
within an organization is analyzed for its needs and costs. Budgets are then built around
what is needed for the upcoming period, regardless of whether the budget is higher or
lower than the previous one.
17. 13. Advantages of zero based budgeting Find cost Effective ways Detects Inflated
budgets Useful for service departments Efficient allocation of resources Increases Staff
motivation Eliminate Wasteful operation Identify opportunities Identify mission Increases
Communication & coordination
18. 14. Disadvantages of Zero based budgeting Difficult to define decision units Forced to
justify every detail Necessary to train managers Compressing may remove critically
important details Honesty of the managers must be reliable & uniform
19. 15. Implementation of Zero based budgeting The zero-based budgeting system puts the
burden of proof on the manager, and demands that each manager justify the entire budget
in detail and prove why he or she should spend the organization's money in the manner
proposed. A "decision package must be developed by each manager for every project or
activity, which includes an analysis of cost, purpose, alternative courses of action,
measures of performance, consequences of not performing the activity, and the benefits.
20. 16. Each budget start with an assumed value of 0. Each budgeted item is started at last
years level, and next periods level is planned as an increment to that level Zero based
budgeting Incremental budgeting Vs
21. 17. A combination of zero-based budgets with rolling budgets or some other form of
budgeting Dysfunctional behavior in subordinates Significant levels of job related
tensions Adverse effects on peer and subordinate superior relationship Behavioral
impacts of Zero Based budgeting
22. 18. Mid term appraisal MTA which is an exercise carried out during the middle of a
Plan period to assess the direction in which the Plan is moving and to take corrective
action wherever required is slated to be much more than a review of how much money
is going into various schemes and projects .
23. 19. Capital budget Capital payments consist of capital expenditure on acquisition of
assets like land, buildings, machinery, equipment, as also investments in shares, etc., and

loans and advances granted by Central Government to State and Union Territory
Governments, Government companies, Corporations and other parties. Capital Budget
also incorporates transactions in the Public Account.
24. 20. Revenue budget The revenue budget consists of revenue receipts of the government
(revenues from tax and other sources) and the expenditure met from these revenues.
25. 21. Hierarchy Of Budgets
26. 22. Capital assets vehiclesvehiclesMachinery & productio n equipment Machinery &
productio n equipment Store equipment & furnishing Store equipment & furnishing Lab
equipment Lab equipment Office furniture & office equipment Office furniture & office
equipment BuildingsBuildings Large IT systems Large IT systems
27. 23. Operatin g budget Operatin g budget Employe e salaries Employe e salaries Utilities
cost Utilities cost Travel & training expenses Travel & training expenses Telephon e &
internet services Telephon e & internet services Marketin g communi cation Marketin g
communi cation Outside consultant fees Outside consultant fees
28. 24. India union budget Revenue Budget: The revenue budget primarily comprises
Government revenue receipts like tax and expenditure met from the revenue. The tax
revenues principally constitute yields of taxes and other duties imposed by the
Government of India. Capital Budget: The capital budget primarily comprises capital
receipts and payments.
29. 25. Revenue Deficit Revenue deficit occurs when the actual amount of expenditure and
actual amount of received revenue do not tally with the anticipated expenditure and
revenue figures
30. 26. Recommendations and Advice by Experts precautionary measures to reduce revenue
deficit level not less than 50% from the current level Recommends lowering the ratio of
revenue deficit to fiscal deficit below 50 percent.