Program budgeting essay

Budgeting Essay. Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

Principles for the Preparation of Budgets: Following principles should be adopted while budgeting for any kind of organisation, and for budgets of any kind: (a) Budget should be related to the organisational objectives, and should be linked with the organisational structure. (b) Budget should be flexible.

Budget A budget is a detailed plan of operations that is predetermined for a particular period. Budgets are quantitative or financial statements prepared for the purpose of attaining a particular objective.

Budget as a Tool of Administration: Budget today has become one of the primary tools of financial administration. It is “the master financial plan of the Government. It brings together estimates of anticipated revenues and proposed expenditures implying the schedule of activities to be undertaken and the means of financing these activities.”