BUDGETING

AKSHATHA JOSHI
 MEANING
Budgeting is a strategic planning process that
businesses use to plan how they will spend their
money in the future. To make a budget, businesses
look at how much money they made (revenue) and
spent (expenses) in the past and use that information
to predict how much money they will make and
spend in the future.
IMPORTANCE
1. Ensuring structured allocation of resources:
2. Work towards reducing the unemployment and poverty level:
3. Reduce income disparities and wealth related concerns:d
4. Keep an eye on the prices:
5. Changes in the Tax System:
TYPES OF BUDGET

Annual or Long-term
Single or Plural
Surplus, Deficit or Balanced
Departmental or Performance
PRINCIPLES OF BYDGETING

1. BUDGET SHOULD BE A BALANCED ONE

2. BUDGET FORMULATION IS THE RESPONSIBILTY OF THE
EXECUTIVE
3. ESTIMATES SHOULD BE ON A CASH BASIS
4. ESTIMATING SHOULD BE,AS FAR AS POSSIBLE, EXACT
5. ANNUALITY OF BUDGET
6. RULE OF LAPSE
 PROGRAMME BUDGET
It is a budget prepared specifically for a project or program.
This type of budget includes expenses and revenues related to
one specific project. No revenues or expenses of any other
projects are mixed with this particular project.
A business has many different projects running at a single time.
Therefore, it becomes very important to set the goals and
objectives of each individual project, along with its budget. This
budget allocates resources to a project, which helps in
monitoring the performance of the project and increases
accountability