budget

Budget - Wikipedia Budget From Wikipedia, the free encyclopedia Jump to: navigation, search For the rental car company, see Budget Rent a Car. For the car insurance company Budget, see Budget Group of Companies. This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2017) (Learn how and when to remove this template message) This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia's guide to writing better articles for suggestions. (August 2013) (Learn how and when to remove this template message) (Learn how and when to remove this template message) A budget is a financial plan for a defined period of time, usually a year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Companies, governments, families and other organizations use it to express strategic plans of activities or events in measurable terms.[1] A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed income. Comme Sisyphe - Honoré Daumier (Brooklyn Museum) Contents 1 Etymology 2 Purpose 3 Corporate 4 Event management 5 Government 5.1 United Kingdom 5.2 United States 5.3 India 5.4 Philippines 6 Personal or family 7 Types 8 References 9 External links Etymology[edit] A budget (derived from old French word bougette, purse) is a quantified financial plan for a forthcoming accounting period.[2] A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. Purpose[edit] A budget helps in planning actual operations by forcing managers to consider how the conditions might change and what steps should be taken now, and by encouraging managers to consider problems before they arise. It also helps to co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include: To control resources To communicate plans to various responsibility center managers To motivate managers to strive to achieve budget goals To evaluate the performance of managers To provide visibility into the company's performance For accountability In summary, the purpose of budgeting tools: Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies, events and plans are carried out. Tools enable the actual financial operation of the business to be measured against the forecast. Lastly, tools establish the cost constraint for a project, program, or operation. Corporate[edit] The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget. If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer. Campaign planners incur two types of cost in any campaign: the first is the cost of human resource necessary to plan and execute the campaign. The second type of expense that campaign planners incur is the hard cost of the campaign itself. Event management[edit] A budget is a fundamental tool for an event director to predict with a reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing tool. There are two basic approaches or philosophies, when it comes to budgeting. One approach is telling you on mathematical models, and the other on people. The first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables, inputs and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are typically held in some type of financial spreadsheet application. The other school of thought holds that it’s not about models, it’s about people. No matter how sophisticated models can get, the best information comes from the people in the business. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets. While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other. Government[edit] Further information: Government budget The budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget : the operating or current budget, the capital or investment budget, and the cash or cash flow budget.[3] United Kingdom[edit] The budget is prepared by the Treasury team led by the Chancellor of the Exchequer and is presented to Parliament by the Chancellor of the Exchequer on Budget Day. It is customary for the Chancellor to stand on the steps of Number 11 Downing Street with his or her team for the media to get photographic shots of the Despatch Box, immediately prior to them going to the House of Commons. Once presented in the House of Commons it is debated and then voted on. Minor changes may be made however with the budget being written and presented by the party with the majority in the House of Commons (the Government), the Whips will ensure that it is passed as written by the Chancellor. United States[edit] Main article: United States federal budget The federal budget is prepared by the Office of Management and Budget, and submitted to Congress for consideration. Invariably, Congress makes many and substantial changes. Nearly all American states are required to have balanced budgets, but the federal government is allowed to run deficits. India[edit] Main article: Union budget of India The first budget of India was submitted on 18 February 1869 by James Wilson. James Wilson is known as the father of Indian budget. Finance Minister is the head of the budget making committee. The budget is prepared by the Budget Division Department of Economic Affairs of the Ministry of Finance annually. This includes supplementary excess grants and when a proclamation by the President as to failure of Constitutional machinery is in operation in relation to a State or a Union Territory, preparation of the Budget of such State.The present Indian Finance minister is Arun Jaitley. Philippines[edit] The Philippine budget is considered the most complicated in the world, incorporating multiple approaches in one single budget system: line-item (budget execution), performance (budget accountability), and zero-based budgeting. The Department of Budget and Management (DBM) prepares the National Expenditure Program and forwards it to the Committee on Appropriations of the House of Representatives to come up with a General Appropriations Bill (GAB). The GAB will go through budget deliberations and voting; the same process occurs when the GAB is transmitted to the Philippine Senate. After both houses of Congress approves the GAB, the President signs the bill into a General Appropriations Act (GAA); also, the President may opt to veto the GAB and have it returned to the legislative branch or leave the bill unsigned for 30 days and lapse into law. There are two types of budget bill veto: the line-item veto and the veto of the whole budget. Personal or family[edit] Further information: Personal budget A personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses. There are many informational sites and software available for use in personal and family budgeting. Types[edit] Sales budget – an estimate of future sales, often broken down into both units. It is used to create company and sales goals. Production budget - an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. Created by product oriented companies. Capital budget - used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. Cash flow/cash budget – a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short-term future. The cash flow budget helps the business to determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Marketing budget – an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. Project budget – a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project budget. Revenue budget – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies. Expenditure budget – includes spending data items.. Flexibility budget - it is established for fixed cost and variable rate is determined per activity measure for variable cost. Appropriation budget - a maximum amount is established for certain expenditure based on management judgment. Performance budget - it is mostly used by organization and ministries involved in the development activities .This process of budget takes into account the end results. Zero based budget - It has clear advantage when the limited resources are to be allocated carefully and objectively. References[edit] ^ "CIMA Official Terminology" (PDF). Archived from the original (PDF) on 2013-08-10.  ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 502. ISBN 0-13-063085-3.  ^ Cliche, P. (2012). “Budget,” in L. Côté and J.-F. Savard (eds.), Encyclopedic Dictionary of Public Administration, [online], http://www.dictionnaire.enap.ca/Dictionnaire/en/home.aspx External links[edit] Library resources aboutBudgets Resources in your library Resources in other libraries The dictionary definition of budget at Wiktionary Media related to Budget at Wikimedia Commons Quotations related to Budget at Wikiquote Origin of the word Retrieved from "https://en.wikipedia.org/w/index.php?title=Budget&oldid=838202570" Categories: BudgetsHome economics21st-century American politiciansHidden categories: Articles needing additional references from March 2017All articles needing additional referencesWikipedia articles needing style editing from August 2013All articles needing style editingArticles with multiple maintenance issues Navigation menu Personal tools Not logged inTalkContributionsCreate accountLog in Namespaces ArticleTalk Variants Views ReadEditView history More Search Navigation Main pageContentsFeatured contentCurrent eventsRandom articleDonate to WikipediaWikipedia store Interaction HelpAbout WikipediaCommunity portalRecent changesContact page Tools What links hereRelated changesUpload fileSpecial pagesPermanent linkPage informationWikidata itemCite this page Print/export Create a bookDownload as PDFPrintable version In other projects Wikimedia CommonsWikiquote Languages AfrikaansአማርኛالعربيةAsturianuAzərbaycancaБеларускаяБеларуская (тарашкевіца)‎БългарскиBosanskiCatalàČeštinaDanskDeutschEestiΕλληνικάEspañolEsperantoEuskaraفارسیFrançaisGalego한국어Հայերենहिन्दीHrvatskiIdoBahasa IndonesiaItalianoעבריתBasa Jawaಕನ್ನಡქართულიҚазақшаKiswahiliLatviešuLietuviųМакедонскиമലയാളംमराठीမြန်မာဘာသာNederlands日本語NorskOʻzbekcha/ўзбекчаਪੰਜਾਬੀپښتوPolskiPortuguêsRomânăРусскийSimple EnglishکوردیСрпски / srpskiSrpskohrvatski / српскохрватскиSuomiSvenskaதமிழ்TürkçeУкраїнськаTiếng Việt粵語Žemaitėška中文 Edit links This page was last edited on 25 April 2018, at 15:21. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view

For more information about budget check the Wikipedia article here

ZME Science posts about budget

Porto on a Budget: Under $25/day for Portugal’s Jewel City

Thu, Jan 15, 2015

0 Comments


Fatal error: Call to undefined function render_post_thumbnail() in /var/sites/z/zmetravel.com/public_html/wp-content/themes/sparkle-childtheme/tag.php on line 69