DEFINITION OF BUDGET AND USES OF BUDGET, A budget may be defined as a financial statement of the total estimated revenue and the proposed expenditure of a government in a given period of time, usually a year.
A budget is a calculation plan, usually but not always financial, for a defined period, often one year or a month.
A budget and uses of budget may include projected sales volumes and revenues, resource quantities including time, costs and expenses, environmental impacts such as greenhouse gas emissions, other impacts, assets, liabilities and cash flows.
Companies, governments, families, and other organizations use budgets to express strategic plans of activities in measurable terms. budget and uses can be seen as listed below
how to prepare a country\’s budget
Preparing a country\’s budget is a complex process that involves various steps and stakeholders. While the specific procedures can vary from country to country, here is a general outline of how to prepare a country\’s budget:
Define the fiscal year: Determine the period for which the budget will be prepared. Typically, it aligns with the calendar year or the country\’s financial year.
Establish budgetary goals and priorities: Identify the country\’s economic objectives, development goals, and policy priorities. These may include promoting economic growth, reducing unemployment, improving infrastructure, enhancing social welfare, or addressing specific challenges.
Collect data and assess the economic situation: Gather relevant economic and financial data, such as GDP growth, inflation rates, employment figures, tax revenue, and expenditure patterns. Analyze the current economic situation, including strengths, weaknesses, opportunities, and threats.
Revenue estimation: Estimate the revenue that the government expects to collect during the budgetary period. This can include various sources such as taxes (income tax, corporate tax, sales tax), fees, fines, grants, and borrowing. Consider both existing revenue streams and any proposed changes to tax policies or new revenue sources.
Expenditure planning: Determine the government\’s planned expenditures across different sectors and programs. This involves assessing the needs and demands of various departments, ministries, and agencies. Prioritize and allocate funds based on the defined goals and priorities.
Develop a budget framework: Create a comprehensive framework that outlines the budget\’s structure, guidelines, and allocation mechanisms. Set spending limits for different sectors, departments, and programs. Define rules for fund allocation, transfers, and contingencies.
Consultation and negotiation: Engage relevant stakeholders, including government ministries, departments, agencies, and representatives from civil society, business sectors, and other interest groups. Seek their input, consider their recommendations, and address their concerns during the budgetary process.
Budget formulation and documentation: Compile the revenue estimates, planned expenditures, and budgetary framework into a formal budget document.
This document should provide a detailed breakdown of revenue sources, allocation of funds, and expected outcomes. It should be transparent and accessible to the public.
Legislative approval: Present the budget proposal to the legislative body or parliament for review and approval.
The parliament will assess the budget\’s feasibility, alignment with policy goals, and adherence to legal requirements. Amendments or revisions may be suggested and incorporated.
Implementation and monitoring: Once the budget is approved, government agencies and departments start implementing the planned expenditures.
Establish mechanisms to monitor spending, revenue collection, and overall budget performance. Regularly review and evaluate progress against the defined goals and priorities.
Review and adjustments: Periodically review the budget\’s performance and make adjustments as necessary. Economic conditions may change, requiring modifications to revenue projections or expenditure plans.
Conduct mid-year reviews and make any required revisions to stay on track.
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A budget expresses intended expenditures along with proposals for how to meet them with resources.
A budget may express a surplus, providing resources for use at a future time, or a deficit in which expenditures exceed income or other resources.
BALANCED AND UNBALANCED BUDGET
PERFORMANCE OBJECTIVES to BUDGET AND USES
Explain the concepts of budget surplus balanced budget and the component of national debt.
Explain the concept of and criteria for revenue allocation (including resource control) in Nigeria and associated problems
IMPORTANCE OR USES OF BUDGET
The budget of a country is used to achieve the following objectives:
Allocation of resources: Budget is usually use to allocate resources from one sector of the economy to another
To communicate government economic objectives and policies: Government usually uses budget as medium to communicate her economic objectives and policies to its people.
Appraisal of government performance: The budget is used by the citizens and the international community to appraise the performance of the government.
- To foster economic growth and development: Budget is used generally to foster economic growth and development of a country.
- Budget is used to curb inflation and deflation: Budget is generally used by government to control inflation and deflation in the economy.
- economic tools for nation building
- budgeting
- factors affecting the expansion of industries
- mineral resources and the mining industries
- demand and supply
- types of demand curve and used
WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL
BUDGET AND USES
