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    Different Kinds of Budget

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    jigs michelle pasamonte
    A budget is a detailed financial plan for a specific period of time. There are several types of budgets including fixed budgets that do not change, variable or flexible budgets that can change based on production volume, partial budgets that evaluate small changes, business setup budgets that plan startup costs, administration expense budgets that plan management costs, and corporate budgets that plan annual finances. Government budgets are financial plans that pursue priority programs and projects to promote economic growth, human development, and good governance.

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    Different Kinds of Budget

    Uploaded by

    jigs michelle pasamonte
    63 views17 pages
    A budget is a detailed financial plan for a specific period of time. There are several types of budgets including fixed budgets that do not change, variable or flexible budgets that can change based on production volume, partial budgets that evaluate small changes, business setup budgets that plan startup costs, administration expense budgets that plan management costs, and corporate budgets that plan annual finances. Government budgets are financial plans that pursue priority programs and projects to promote economic growth, human development, and good governance.

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    A budget is a detailed financial plan for a specific period of time. There are several types of budgets including fixed budgets that do not change, variable or flexible budgets that can change based on production volume, partial budgets that evaluate small changes, business setup budgets that plan startup costs, administration expense budgets that plan management costs, and corporate budgets that plan annual finances. Government budgets are financial plans that pursue priority programs and projects to promote economic growth, human development, and good governance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    63 views17 pages

    Different Kinds of Budget

    Uploaded by

    jigs michelle pasamonte
    A budget is a detailed financial plan for a specific period of time. There are several types of budgets including fixed budgets that do not change, variable or flexible budgets that can change based on production volume, partial budgets that evaluate small changes, business setup budgets that plan startup costs, administration expense budgets that plan management costs, and corporate budgets that plan annual finances. Government budgets are financial plans that pursue priority programs and projects to promote economic growth, human development, and good governance.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 17

    DIFFERENT KINDS OF

    BUDGET

    JIGS MICHELLE P. PASAMONTE I


    Reporter
    A budget is a detail plan of operations for a
    specific period of time. In the present era everyone is
    with the term budget because it essential in life. A
    budget is prepared for the effective utilization of
    resources, which will help in achieving the set
    objectives. Budgets are also very important in individual
    life, as it is important in business firms.

    The following are the essential of budget:

    • It is prepared in advance and is based on future plan


    of action.
    •It relates to a future period and is based on objectives
    to be attained.
    •It is a statement expressed in monetary or physical
    unit prepared for the formulation of policy.
    TYPES OF BUDGET
    1. Fixed Budget , often called a static budget, is not
    subject to change or alteration during the budget period.
    A company "fixes" budgets in at least two circumstances:

    a. The cost of a budgeted activity shows little or no


    change when the volume of production fluctuates within an
    expected range of values. For example, a 10 percent increase
    in production has little or no impact on administrative
    expenses.

    b. The volume of production remains steady or


    follows a tight, pre-set schedule during the budget period. A
    company may fix its production volume in response to an all
    inclusive contract; or, it may produce stock goods.
    TYPES OF BUDGET
    2. Variable or Flexible Budget is called
    a dynamic budget. It is an effective evaluative tool for
    a company that frequently experiences variations in sales
    volume which strongly affect the level of production. In
    these circumstances a company initially constructs a
    series of budgets for a range of production volumes
    which it can reasonably and profitably meet.

    3. Partial Budget: Partial Budget aims to make


    small changes in the financial condition of a corporation.
    The process of Partial Budgeting involves a comparison
    between the plus and minus effects occurring due to the
    implementation of the proposed changes on the net
    income.
    TYPES OF BUDGET

    Partial Budgets are in fact helpful while


    evaluating changes like:

    - Improving the capital condition

    - Expansion in the size of a company

    - Searching for alternative companies, where


    changes needto be introduced

    - Employment of a custom operation, and not a


    purchasing instrument

    - Variations in the methods of productions


    TYPES OF BUDGET
    4. Business Set Up Budget: A Business Set Up
    Budget deals with the financial expenses required
    during the establishment of a commercial firm or
    enterprise. The expenses in this case include the costing
    of the basic infrastructures. It is considered as one of the
    fundamental means of introducing, improving and
    maintaining a business house. Hence, it explicitly
    studies the inflow of cash in the form of income, and
    plans the expenses of the concerned organization, based
    on the available funds in hand. Since a Business Set Up
    Budget is only based on assessments of the expected
    income and expenditures, the predictions and
    calculations are subject to variations. Hence arises the
    requirement of reviewing the budgetary documents
    from time to time, to adjust the estimated facts and
    figures with the actual ones.
    TYPES OF BUDGET
    5. Administration Expenses budget: The
    budget covers the expenses incurred in framing policies,
    directing the organization and controlling the business
    operations. In budget an estimate of expenses is
    prepared regarding central office and of management
    salaries. The budget may be prepared at department
    level for effectiveness in budgeting system. The budget
    can be prepared with the past experience and
    anticipated changes.

    6. Corporate Budget: formulates the annual


    fiscal agendas, plans and programs of a commercial
    organization. It works for putting forward the expected
    income and expenditure figures of a company, for the
    next financial year.
    A government budget is a financial plan to pursue the priority
    programs and projects of the government and its development thrusts.

    It is a tool for economic growth through its allocations for


    infrastructure, agriculture, science and technology, and other areas
    that will help generate employment and increase the country’s
    productivity.

    It is a tool to promote human development by investing in


    basic social services like education, health and social welfare.

    It is also an instrument for good governance, as implementing


    agencies are accountable for the use of their given budgets by
    delivering target results.
    2012 National Budget
    P1.816 TRILLION
    10.4% higher than the 2011 budget • 16.5% share of the country’s Gross Domestic Product (GDP)
    Bulk Goes to Salaries (Allocation by Expense Class)
    Personal Services
    This will go to salaries and other compensation of civil servants. This
    increased by 9.9 percent from 2011 due to pay hikes under the Salary
    Standardization Law III, as well as additional allowances for teachers,
    policemen, soldiers and others.

    Maintenance and Other Operating Expenditures


    This increased by 24.3 percent from 2011 to cover the expansion of
    operating programs for social and economic services such as health
    insurance subsidy for the poor, rice self-sufficiency and conditional cash
    transfers.

    Infrastructure and Capital Outlays


    This will go to roads, bridges, ports and other vital infrastructure that
    facilitate the movement of people, goods, services and information to
    drive economic growth. This substantially increased — by 31.7 percent
    — over last year’s allocation.
    Support to Government Firms
    Budgetary support for government-owned or -controlled corporations
    (GOCCs), in the form of operational subsidy and equity infusion,
    significantly increased by more than 100 percent from 2011. In
    particular, additional support for GOCCs in the agriculture sector
    increased in line with rice self-sufficiency goals.

    Support to Local Governments


    Support for local government units, particularly their internal
    revenue allotments (IRA), unfortunately decreased by 3.0 percent
    over 2011 as tax collections in 2009 decreased due to the global
    financial crisis. IRA is computed as 40 percent of all internal revenue
    taxes collected three years prior.

    Debt Burden
    The debt burden’s share of the national budget — particularly interest
    payments to local and foreign creditors — decreased to 19.6 percent
    from 22.6 percent in 2011 due to favorable interest and foreign
    exchange rates.
    Allocation Per Region 2012

    P770.5 Billion
    The direct share of the regions in the national budget significantly
    increased by 24 percent to P770.5 billion.
    Luzon will still get the largest share of the total regionalized budget
    at P399.5 billion, by virtue to size and population.
    The shares of Visayas and Mindanao — which have a higher number
    of poor families – increased significantly by 26.2 percent to P159.2 billion,
    and by 28.5 percent to P211.9 billion, respectively.
    No man is good enough to
    govern another man
    without that other's
    consent.

    - Abraham Lincoln -
    END OF REPORT

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