Explain the Different Types of Government Budget

Explain sources of internal public debtPlease type no handwriting Thanks. I Sales Budget ii Production budget iii Financial budget iv Overheads budget v Personnel budget and vi Master budget.

Types Of Budgets The Four Most Common Budgeting Methods

Now having understood the concept of budget in the last article let us understand the different kinds of budget that are there in the public financial management.

. Surplus budget shows the financial soundness of the government. Explain THREE 3 types of tax structure with diagram7. Capital Budget These refer to receipts that reduce assets for a government and create financial liabilities.

Basic Budget Current Budget Fixed Budget Flexible Budget Master Budget and Functional Budget 1. When government receipts are equal to the government expenditure. Labor hours workers grade costs etc.

Personnel Budget is one of the crucial types of the budget which covers the manpower budget for the specific period. Production Cost Budget 3. Capital assets include items that have useful lives of more than 12 months such as buildings building.

Budgeting for business plays a vital role in the management control system. Based on conditions prevailing a budget can be classified into 2 types. The following points highlight the nine types of budget.

There are two main elements of the Government Budget. 6 Important Types of Budgets Explained. Based on Time A budget created for a designated time period which is also called the Budgeting Period short-term intermediate-term long-term.

It gives a brief understanding of what budgets are what are budgeting and its different methods ie zero-based incremental traditional and activity-based. A r evenue deficit is the surplus of revenue expenditure over revenue receipts. The budget forecasts the future activity of the company and helps in allocating the fundsresources to the different areas or departments of the business.

Decentralized controls towards the operational and lower management. What are the different types of government budgets6. Concept of Government Budget and the Economy.

Revenue Budget As its name suggests the revenue budget refers to revenue receipts generated and expenses met through. Unbalanced budget is of two types -Surplus Budget. Fixed planning often budgets plans with yearly or longer terms.

Capital Expenditures or fixed capital formation or government. Four Main Types of BudgetsBudgeting Methods 1. For each function there is usually a separate budget which is controlled by the functional manager.

A budget that is established for use as unaltered over a long period is called Basic Budget. A functional budget is a budget which relates to the individual functions of the organisation like sales production purchase capital expenditure etc. Government expected revenue Government proposed Expenditure.

This budget is based on a long term plan and current budgets are prepared on its basis. A deficit can be of 3 types. Dividing total cost of each category by the budgeted production level results in variable cost per unit of 050 for indirect materials 040 for indirect labor and 040 for utilities.

Elements of Government Budget. Cash budget shows the actual picture of the role of government in the flow of funds in the economy. A f iscal deficit is the excess of budget expenditure over budget receipts other than borrowings.

Revenue fiscal and primary deficit. Current Expenditures or Government final consumption expenditure on goods and services for current use to directly satisfy individual or collective needs of the members of the community. It may be fixed or flexible.

The fixed overhead volume variance is not a flexible budget variance. Since it takes care of all the personnel and efficient working of an organization depends on the payment of the employees this is one of the important types of budget. When government expenditure exceeds government receipts.

What are the different types of government budgets6. In the original budget making 100000 units resulted in total variable costs of 130000. It refers to the estimated.

Types of Budget in Cost Accounting 6 Common Types. Based on Capacity A budget created according to the capacity of resources namely. Material Consumption Budget Labor Utilization Budget Cash Budget etc.

Continuous or rolling planning with monthly budget updates. When government receipts exceed expenditure. It is of two types.

It has wider scope and is less detailed than a current budget. A budget can be of three types. Flexible budget variance.

Types of Budget Based on Condition. Before we understand the different types of budgeting methods let us know the meaning of the budget. It reflects the inefficiency of the government to reach its regular or recurring expenditure.

Zero Base Budgeting 6. Explain THREE 3 types of tax structure with diagram7. They are as follows.

Flexible planning responding to market changes and updated KPIs. So government spending or government expenditure is often divided into three main types. It refers to the estimated receipts of the government from all the sources during a fiscal year.

The b Types of Budget Master Budget Operating Budget Financial Budget. The budget is a surplus budget when the estimated revenues of the year are greater than anticipated expenditures. As suggested by the name a balanced budget is that which has no deficit or surplus.

A capital budget estimates all capital asset acquisitions and summarizes all expenses and costs of major purchases for the next year. Centralized controls towards the top level management. Plant Utilisation Budget 2.

In cash budget the different types of revenues earned by the government irrespective of source are treated as budgetary receipts and different fur s spent by the government are considered as budgetary expenditure. Top-Down Budgeting Top-down budgeting refers to a budgeting method where senior management. There are many different types of budgets and each type serves a different purpose.

Incremental budgeting takes last years actual figures and adds or subtracts a percentage to. It reflects the total government borrowings during a fiscal year. Capital Expenditure or Gross.

Direct Material Budget 4. Some of types of Budgets are.

Fiscal Policy Overview Of Budgetary Policy Of The Government