Please enable JavaScript.
Coggle requires JavaScript to display documents.
PUBLIC BUDGET, GROUP MEMBERS (GROUP 6) - Coggle Diagram
PUBLIC BUDGET
-
-
TYPES OF BUDGET
BALANCED BUDGET
- Balanced budget is a budget that has no deficit or surplus.
- The revenues coming are equal to the expenditures.
REVENUE BUDGET
- It is just the details of the revenue received by the government through taxes and other sources and the expenditure that is met through it.
PERFORMANCE BUDGET
- Mostly used by the organizations and ministries involved in the developmental activities.
This process of budgeting takes into account the result or the performance of the developmental program thus ensuring cost-effective and efficient planning.
ZERO BASED BUDGET
- Zero-based budget is a method of budgeting in which all expenses must be justified for each new period.
- The process of zero-based budgeting starts from a 'zero base', and every function within an organization is analyzed for its needs and costs.
- The budget are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.
-
-
ROLES OF BUDGETS
-
Establish through adoption of an annual budget what services and the level of services to be provided and how they will be financed.
-
-
-
SOLUTION
-
Economic growth
If the economy grows, then the government will increase tax revenue, without raising taxes.
-
-
DEFINITION
- Budgeting is the process of preparing a budget, which sets estimations for revenues and expenses for future periods.
- It is a mechanism for allocating resources to goals and objectives of an entity and is related to the strategic plan.
- The budget is the financial statement prepared in order to forecast the expenditures and revenues for the budgetary period and to be used by managers and policy makers in decision-making and accountability processes.
CYCLE OF BUDGET
- The budget cycle is the process in which companies and governments create, evaluate and approve budgets.
- The budget cycle refers to the life of a budget from creation to evaluation. Although small businesses might not define the budget process, they still use the process when they painstakingly work through the steps required to build and implement a budget.
-
-