BUDGETING

INTRODUCTION Meaning of Budget: Literally the word budget means a leather bag or sachet to carry official papers in. Budget is the heart of administrative management. It served as a powerful tool of co-ordination and negatively an effective device of eliminating duplicating and wastage. DEFINITION Budget is concrete precise picture of the total operation of an enterprise in monetary terms. - HM Donovan. Budget is an operational plan, for a definite period usually a year. Expressed in financial terms and based on expected income and expenditure. - B.T.Basvanthappa.

PURPOSES OF BUDGETING
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Budget supplies the mechanism for translating fiscal objectives in to projected monthly spending pattern. Budget enhances fiscal planning and decision-making. Budget clearly recognizes controllable and uncontrollable cost areas. Budget offers a useful format for communicating fiscal objectives Budget allows feedback of utilization of budget Budget helps to identify problem areas and facilitates effective solution. Budget provides means for measuring and recording financial success with the objectives of the organization.

PRINCIPLES OF BUDGET           Budget should provide sound financial management by focusing on requirements of the organization. Budget should focus on objectives and policies of the organization. It must flow from objectives and gives realistic expression to the way of realizing such objectives Budget should ensure the most effective use of scarce financial and non-financial resources. Budget requires that a program activity planned in advance. Budgetary process requires consistent delegation for which fixed duties and responsibilities are required to be allocated to managers at different levels for framing and executing budget. Budgeting should include coordinating efforts of various departments establishing a frame of reference for managerial decisions, and providing a criterion for evaluating managerial performance. Setting budget target requires an adequate checks and balance against the adoption of too high or too low estimate. Budget period must be appropriate to the nature of business or services. Budget is prepared under the direction and supervision of the administrator or financial officer. Budgets are to be prepared and interpreted consistently thorough out the organization in the communication of planning process

 

Budget necessitates a review of the performance of the previous year and an evaluation of its adequacy both in quantity and quality. While developing a budget, the provision should be made for its flexibility.

BUDGETING IN NURSING EDUCATIONAL INSTITUTIONS Budgeting means preparing the statement of income and expenditure for the smooth functioning of an educational institution. In the present day set up of school or college, nursing there is a need of becoming more conscious of the financial aspects of education. The budgeting consists of preparing an inventory of educational requirements, drawing up programs for meeting the requirements and allocating financial means to them. An administration is very much responsible for said economy of the school or college of nursing. FINANCING AND BUDGETING: The financial powers of the principal should be similar to another head of an educational institution which will be laid down in the finance code. CONTENT OF OPERATIONAL BUDGET Budget Heads j Revenue j Capital j Recruitment annual j Nonrecurring Budget Items j Pay and allowance of officer j Pay and allowance of establishment j Contingencies j Equipment apparatus and supplies j Books, A.V. aids, telephone, petrol, electricity, water, postages, rents, rates and taxes, stationary and printing, transport, TA and DA, etc. Auditory Inventory of equipment: j Books j Furnitures and linen School should have a separate budget, i.e. principal in charge of the school of nursing should be the drawing and disbursing officer and empowered to plan for operating the funds in all different heads as per government rules and regulations and as deemed necessary for running an educational institutions.

SUMMARY Till now we have discussed the meaning, definition of budget, purposes of budgeting, principles to be followed and process of budgeting in nursing educational institutions. CONCLUSION Thus budget is the heart of administrative management. Budgeting presents an opportunity for evaluating programmes and policies thereby identifying obsolete or unnecessary activities and giving a call for their discontinuance. BIBLIOGRAPHY BooksB.T. Basvanthappa, NURSING ADMINISTRATION, 1st edition, 2007, jaypee brothers medical publishers (p) ltd, New Delhi. Page no. 152-164 BT Basavanthappa, TEXT BOOK OF NURSING EDUCATION, 2nd edition, 2010, Jaypee Medical Publishers, New Delhi, page no- 804, 816, 834. Neelam kumari, A TEXT BOOK OF NURSING SERVICES AND EDUCATION, 3rd edition, 2011, s.vikas and company medical publishers, India. Page no. 352-360 Websiteswww.educoc.org.co.in www.scribd.com