Govt. mostly makes two or three type budgets. One is financial budget for a year for the works which is being operated or will operate in future. This budget can also divide in sub- parts. First sub part is anticipated budget. It is that budget which is proposed for next year. Next sub- part is actual budget which is made in the end of year. In this budget, we have to show what are the main fund and what is the amount of total expenditure and what refresh cost will be incurred. One more type of Govt. budget is for salary. This budget is also made anticipated at the beginning of the year and then, at the end of year, it is also made on actual salary cost basis.
Long Period Govt. Budget
For completing big projects, Govt. makes long period budgets. These projects are given to big companies. For example budgets for establishment of oil refinery, thermal plants and central sponsored national roads projects. For example Jalandhar to Panipat National 6 line highway road, bridge, housing Colonies. Govt. first invests money on yearly basis and then project is started for long period under long period govt. budget.
Variance on Financial Budget and Salary Budget
If project is not completed at the given time, its cost is increased. Value of budget is also increased due to this reason. If projects are completed with in time, there will not be variation in budgeted and actual cost. If variation will exist, it will be very very minor. We can state that these variation will be 2% or 3%. But all the projects which have been delayed due to delay of tender or not working by contractors or shortage of funds. Due to this, there will need to increase expenses.
Benefits of Classification of Govt. budgets:
Govt. has lots of departments. If govt. will not classify his total master budget into different sub-parts, how can govt. estimate the need of each department? Some budgets are also sponsored by Central govt. Central govt. sponsored the fund for specific projects. Central govt. pays money to State govt. and state govt. issues money on the basis of different budgets of its different departments.
Long Period Govt. Budget
For completing big projects, Govt. makes long period budgets. These projects are given to big companies. For example budgets for establishment of oil refinery, thermal plants and central sponsored national roads projects. For example Jalandhar to Panipat National 6 line highway road, bridge, housing Colonies. Govt. first invests money on yearly basis and then project is started for long period under long period govt. budget.
Variance on Financial Budget and Salary Budget
If project is not completed at the given time, its cost is increased. Value of budget is also increased due to this reason. If projects are completed with in time, there will not be variation in budgeted and actual cost. If variation will exist, it will be very very minor. We can state that these variation will be 2% or 3%. But all the projects which have been delayed due to delay of tender or not working by contractors or shortage of funds. Due to this, there will need to increase expenses.
Benefits of Classification of Govt. budgets:
Govt. has lots of departments. If govt. will not classify his total master budget into different sub-parts, how can govt. estimate the need of each department? Some budgets are also sponsored by Central govt. Central govt. sponsored the fund for specific projects. Central govt. pays money to State govt. and state govt. issues money on the basis of different budgets of its different departments.
 | Written by Guest Writer Shri Om Parkash |
Shri Om Parkash completed his B.Com degree in 1970. He started his Career with office Assistant in Private Company in 1970. In 14 April 1971, he selected for State Govt. service as Account Assistant. After this, he never saw back and he provided his best services in Govt. department with honestly and dedication for 35 years. He retired as Circle Superintendent of Water Supply and Sanitation Department ... Read More >> |
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