A budget process refers to the process by which governments create and approve a budget, which is as follows:
- The Financial Service Department prepares worksheets to assist the department head in preparation of department budget estimates
- The Administrator calls a meeting of managers and they present and discuss plans for the following year’s projected level of activity.
- The managers can work with the Financial Services, or work alone to prepare an estimate for the departments coming year.
- The completed budgets are presented by the managers to their Executive Officers for review and approval.
- Justification of the budget request may be required in writing. In most cases, the manager talks with their administrative officers about budget requirements. Adjustments to the budget submission may be required as a result of this phase in the process.
Budgeting refers to the setting of the expenditure with respect to the organization’s core function which is responsible for the overall functionality of the firm. Budgeting is the setting and allocation of the capital which is then used in the proper way to achieve the set or designated targets of the firm. Budgeting needs to be very much focused and clearly prepared that cover all of the financial constraints in that sense that any of the investment that would be planned in the future will cover the financial targets of the firm, its viability should be in due course of the firm’s overall strategic financial plan, the routine and daily occurring expenses will have their proportionate allocation that if any investment will be in its way that will not hurt any of the scheduled existing expenses of the firm. Budgeting needs to be done in a proper and meaningful way that it covers all the financial targets of the company, these targets needs to be achieved so as to be called the successful budgeting. Financial budgeting is also referred as the investment appraisal that finalizes and clearly shows that the investment through which the firm will be going through must have fulfill all the financial targets.
Read more about Budget Process: Terminology, Constitutional Economics
Famous quotes containing the words budget and/or process:
“We might come closer to balancing the Budget if all of us lived closer to the Commandments and the Golden Rule.”
—Ronald Reagan (b. 1911)
“The moralist and the revolutionary are constantly undermining one another. Marx exploded a hundred tons of dynamite beneath the moralist position, and we are still living in the echo of that tremendous crash. But already, somewhere or other, the sappers are at work and fresh dynamite is being tamped in place to blow Marx at the moon. Then Marx, or somebody like him, will come back with yet more dynamite, and so the process continues, to an end we cannot foresee.”
—George Orwell (1903–1950)