Budget Analysis

In: Business and Management

Submitted By tartulona
Words 3987
Pages 16
Budget might be regarded as public intentions with price tags attached. Budgets include itemized estimates of anticipated income and expenses, including a plan of operation based on such estimates. Government budget, forecast by a government of its expenditures and revenues for a specific period of time. In national finance, the period covered by a budget is usually a year, known as a financial or fiscal year, which may or may not correspond with the calendar year. The word budget is derived from the Old French bougette (“little bag”).
Budgets have an economic, political and technical basis. Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. The technical element is the forecast of the likely levels of revenues and expenses.
Rational Of The Study:
The Paper is assigned by our course teacher Ast. Prof. Md. Shariful Alam Khandakar as a part of our“Taxation” course. The topic of our Assignment paper is “Budget Analyse of FY 2012-13’ impacts”. By conducting this Assignment we can enhance our knowledge and skill to apply various research methods in professional life on higher educational life. The assigned task has given us a chance to raise our quality in developing research instrument and its applications. By doing so, we can boost our acceptability in economy and develop our real life knowledge.

Objectives of the Study:
The main objective of the study is to analyze the present (FY11-12) budget of Bangladesh &show its sectored impact. Moreover This study has the following objectives: • To know about Budget.

• To know the nature & practice of Budget.

• Analyze the FY12-13 BD budget.

• Impact of the budget in the economy

Scope of the…...

Similar Documents

Budget Management Analysis

...Budget Management Analysis Budget management is an important concern for organizations, especially today with the economic strain on businesses. The strategies to manage budgets and possible variances will be addressed within the context of this paper. A comparison of five expense results with the budgetary expectations and reasons for possible variances will be presented. Benchmarking techniques that may improve budget accuracy in future forecasts will also be concentrated on within the body of information presented Managing a Budget within the Forecasts According to Finkler, Kovner, and Jones, (2007), organizations exercise control over operations through the use of a management control system. The determination of whether a business is able to appropriately budget for future expenses, economic downturns, and risks is critical in today’s economic crisis. The methods by which a budget is created are specific and take into consideration several factors that provide target, actual, and variance results. The strategies used to create a budget vary among industry, organization, department, and/or manager just to name a few. Budget variances, strategies, and benchmarking techniques are critical to the final budget formulated for a business. A budget is a way to assist managers to follow a set strategic plan to ensure resources are used to efficiently to achieve the goals and follow the mission of the organization. A budget provides estimates of revenue, expenditures...

Words: 1281 - Pages: 6

Budget Analysis of Bangladesh

...Rafsan Mahtab ID: 16-087 Here I have included the proposition and analysis of indirect taxes for the budget FY: 2009/10 Proposition Currently in our country a big portion of tax revenue is earned by import duty which constitutes nearly 42% of the total tax revenue. Because of the ongoing current global recession it is suspected that the revenue from this sector may go down. In this year’s budget a change has brought in the import tariff in certain areas to protect our local industries and retain our export market. Some measures has been proposed which are: 1. A reduction in the in the duty on basic raw materials from 7% to 5% to make our local industry more competitive both in local and international market. 2. Agricultural sector has been declared as the top priority sector and the continuation with the zero tariff on imports of fertilizer, seeds and major food grains. Along with medicine and raw cotton .withdraw VAT on the imports of raw materials to produce pesticides has been proposed to keep pesticides easily available for farmers. 3. Increasing supplementary duty on the imports of luxury vehicles and restructuring of duty slabs has been proposed to augment revenue collection and to discourage imports of luxury vehicles. 4. In order to offer exemption from supplementary duty against import of hybrid motorcars, which is fuel efficient, it is proposed to create a new HS code for separate classification. 5. To enable importation of durable...

Words: 1112 - Pages: 5

Budget Analysis

...Summary Report Budget Items An in-depth analysis of the Year 9 budget reveals several budgetary items that raise concern. First and foremost, the anticipated units to be sold is 3510. This is due to management’s assumption that the declining market will rebound and improve slightly in the upcoming year. However, this forecast is not supported by past sales performance. In Year 8, there was a 16.3% decrease in cost of goods sold. Based solely on this statistic, one would assume a smaller increase or no increase at all in units sold during Year 9. It is unclear where the basis for the projected unit sales has come from and that is problematic. Another problematic area is the accounts receivable projected budget, which also assumes an increase from $609,960 in Year 8 to $639,694 in Year 9. Accounts receivable suffered a 15.0% loss between Years 7 and 8. Based on this number, it is difficult to understand why the company would assume a 10% increase in total accounts receivable in Year 9. There are few changes in Facility and General Operations Level expenses. The budget for advertising is increased from $27,428 to $28,412. I would recommend an even larger adjustment in the advertising budget, especially if the company is expecting to sell more bikes. In the past, advertising expenses have been positively correlated with company revenue. Between Year 6 and 7, advertising costs increased by 37.5% and net sales increased by 33%. However, between Year 7 and 8, advertising......

Words: 1251 - Pages: 6

Budget Analysis

...FT 6202: Management Science (2012-2013) Class 1: Introduction to Transportation Problem Re-cap of linear programming, Classic transportation problem, LP formulation, Solution using MS Excel Text: BRS 5.1, 5.2, 5.3 Class 2: Transportation Problem (cont.) Basic feasible solution of TP, properties, Analysis of Excel output, Sensitivity analysis Text: BRS 5.1, 5.2, 5.3 Class 3: Transshipment problem Formulation of LP model, different variations (unbalanced case, combining with production scheduling, multi-modal and multi-SKU transportation), Conversion of transshipment model into classic transportation model. Text: BRS 5.4, 5.5 Class 4: Assignment problem Binary ILP formulation, solution by Hungarian method Text: BRS 5.6 Class 5: Network models Shortest path problem, Minimal spanning tree Text: BRS 5.8, 5.9 Class 6: Game theory Introduction to game theory: Types of game, Two person zero-sum game, concept of saddle point, dominance rule Text: WW 14.1, 14.2 Class 7: Game theory (contd.) Mixed startegy, Linear programming formulation Text: WW 14.2, 14.3 Class 8: Mid-term Test Class 9: Markov chain Introduction to stochastic processes, markov chains, transition probability matrix, steadystate probabilities. Text: Handouts and WW 17.1, 17.2, 17.3 Class 10: Decision theory Decision making under uncertainty, Decision criteria, Decision Tree Text: BRs 8.1, 8.2, 8.3, 8.4, 8.6 Class 11: Decision theory (contd.) Decision making under risk, EVPI, EVSI Text: 8.5, 8.8, 8.9 Class 12:......

Words: 354 - Pages: 2

Budget Management Analysis

...Budget management analysis is commonly used by mangers as a tool helping to make sure that all resources in existence get put to use correctly. The budgets are determined annually because they are determined by the preceding year’s budget and differences. Budgets can be controlled by specific techniques to control budgets within prediction, consider five to seven expense results with budget anticipations, explain possible factors that cause fluctuations, present ways to keep results associated with goals, share three benchmarking strategies, and consider the ones that could increase budget accuracy, and give good reason for the choices made. (Finkler, 2007) Several techniques are often used to regulate budgets; managers as well as the chief financial officer of nearly all health related agencies provide the techniques necessary to manage the budget. By balancing the budget the institution will likely be better organized for the financial guidelines, which are the company’s upcoming expenses. A few techniques that can improve balancing the budget are zero based, activity based, performance based, cost fluctuations and benchmarking. Zero based budgeting examines each individual expense within a business and justifies the necessity and expense of each. Activity based pricing is the accumulation of the operating cost records, which is also assigned to individual programs which include engineering. The performance dashboard applies the metrics of functioning and examines the......

Words: 1455 - Pages: 6

Policy Analysis of Nasa's Budget

...Policy Analysis of the Budget Percentage Appropriated to NASA February 5, 2013 Introduction to the Policy Issue. As it stands today, the National Aeronautics and Space Administration is at a crossroads. It seems a lack of direction has plagued the organization in recent years and with the close of the Space Shuttle program this past year, the questions looming have become even more exposed. What next? Recent budget cuts have left NASA funded at its lowest level in four years5, forcing the space agency to juggle priorities (see Figure 4) and think uncharacteristically “inside the box” for answers to this question. Background on the Issue. NASA's budget peaked in the period 1964-1966(see Figure 2), during the height of construction efforts leading up to the first moon landing under the Apollo program. Since then, NASA has undertaken many projects, while its portion of the national budget has been slowly chipped away. There are many ideas, but no definite decisions on what NASA should set to achieve next. Without proper leadership, direction, and funds, NASA and the United States will soon take a back seat in the ‘space race’. Effects of Present Problem and Current Policies. Identifying policy alternatives is important because NASA’s impact can be seen through: * Being a leader in space exploration is still considered as essential to a majority of Americans (see Figure 3); * The dollars spent in each state, boosting economies throughout the entire......

Words: 906 - Pages: 4

Manufacturing Budget Analysis

...Module 5 Assignment 2: Manufacturing Budget Analysis Budgets are used for two distinct purposes—planning and control. Planning includes developing goals and preparing various budgets to achieve those goals. Control includes gathering feedback to ensure that the plan is being properly executed or modified as business circumstances change. To be effective, a good budgeting system must provide for both planning and control. Good planning without effective control is a waste of time and effort (Garrison, Noreen, & Brewer, 2012, p. 336). Budgetary control is an important tool in business decision-making processes, but for Ferguson & Son, they have been using the control system inefficiently. Budgetary control should help corporate executives monitor expenses and adjust operations accordingly. For example, senior management may reduce expenses in one department and increase the budget of another business unit based on performance indicators. For the issues with Ferguson & Son, Tom Emory’s statement regarding not knowing if the accounting department’s reports would reflect a good or bad performance shows a lack of communication within the organization. It seems the accounting department and the business owners are not communicating well because the business owners are not being kept informed of how they are performing and accounting is unaware of the business reasons behind the expense fluctuations. This creates inefficiency in reporting and management may......

Words: 1715 - Pages: 7

Budget Management Analysis

...largest source of funding for medical and health-related services for people with limited income in the United States SCHIP: The State Children's Health Insurance Program administered by the Centers for Medicare and Medicaid Services makes funds available to states that have in place federally approved programs providing health insurance coverage to uninsured children. This program gives each state permission to offer health insurance for children, up to age 19, who are not already insured. SCHIP is a state administered program and each state sets its own guidelines regarding eligibility and services. EMTALA: The Emergency Medical Treatment and Active Labor is a United State Act of Congress passed in 1986 as part of the Consolidated Omnibus Budget Reconciliation Act (COBRA). It requires hospitals to provide care to anyone needing emergency healthcare treatment regardless of citizenship, legal status or ability to pay. There are no reimbursement provisions. Participating hospitals may only transfer or discharge patients needing emergency treatment under their own informed consent, after stabilization, or when their condition requires transfer to a hospital better equipped to administer the treatment Private Insurance: Most Americans receive their health coverage through the private insurance market, usually through their jobs. However, many people buy insurance on their own in the individual market. Since coverage from private companies is the largest source of insurance......

Words: 2760 - Pages: 12

Budget Analysis

... Budgetary Analysis Heather Horning HCS/550 August 18, 2014 Elaine Bobo Budgetary Analysis The Medicaid program is one of the largest sources of health insurance in this country in addition to employer-based health insurance and Medicare. Medicaid delivers crucial medical related services to the most at risk populations in society. The importance of Medicaid's part in providing health insurance cannot be exaggerated; “the Medicaid program covers millions of low-income women, children, elderly people and individuals with disabilities” (U.S Department of Health and Human Services, 2000). Funding for Medicaid is limited through various federal policies, leaving much of the program’s budget burdened on the individual states to make necessary spending cuts in order to provide the funds needed for the demand of the program. Budgetary decisions need to be thoroughly reviewed before any immediate action is taken as these decisions can create a domino effect on other programs and their participants as sections of this paper will describe. Medicaid Overview Medicaid is a cooperative federal and state program with a common goal to provide a vital service for the general public. “Medicaid is the largest source of federal revenue for states. Medicaid funds support health care providers, jobs and state economies overall” (Kaiser Family Foundation, 2013). Every state institutes its own eligibility criteria, benefits platform, payment rates and program organization under the broad......

Words: 1949 - Pages: 8

Budget Analysis

...Budget Management Analysis for the Post Anesthesia Care Unit The budget management process is not an easy task. It is time consuming and difficult. There are some ways to overcome the challenge of managing budgets within forecasts. One way is to budget and report beyond the ledger. Data should be looked at beyond the company’s financial system. This will allow the company to create more accurate forecasts. Next the budget software should be user-friendly. If it is easy to use, the happier the employees are to use and understand it. Thirdly, the budget should have the options to incorporate a flexible financial model. Managers should be able to input information on how their particular department relates to other departments or functions. Next, the company must be able to adapt quickly to change because change is inevitable. The employees can respond to organizational, industrial, and global economic changes with re-forecasting or rolling forecasts. Improving collaboration between organizations, project teams, management, and department managers are another effective strategy to manage budgets within forecasts. Keep on task and submit tasks in a timely manner will help speed up the approval process. Last but not least always look to improve technology and software. One example would be cloud based software. This can decrease the cost for the company by decreasing the need for on-site IT infrastructure to maintain the information. My Manager is the Director of the entire......

Words: 1369 - Pages: 6

Budget Analysis

...Budget The proposed total budget allocated for the digitisation project is which will be distributed across total duration of 34 weeks. The budget is consumed aggressively in week 5 and week 9 of the project. The total hardware and software cost is 67,331.90 AUD, which is further broken down in details under the resources sheet in the budget delivered with the project. The total labour cost which includes the contractors and HP- SME is 65,160.00 AUD. This cost includes the amount that must be paid to the employment agency as well. Other payments categorised as miscellaneous will be 16,296.00 AUD. All suppliers will be asked to send official invoices with each deliverable separately, which will be collected by the IT engineer and project manager upon arrival. Then the IT engineer will compare the invoice content to the actual delivery, and then will be compared to the purchase order by the project manager. All invoices will be handed to the project manager and each invoice will be sent to the department’s accountant to be given a code of project name and numeric extension according to general ledger system, then the project manager will mark each item in the budget with a corresponding invoice code to acknowledge it. Project manager will be summing the total of the received invoices and comparing it to PO in weekly basis, any deviation should be communicated to sponsor timely with justification. The project manager will be giving a notification to the finance department......

Words: 547 - Pages: 3

Cafr Budget Analysis

...CAFR BUDGET ANALYSIS 2 CAFR Budget Analysis The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) serve similar functions for different accounting entities. The GASB maintains accountability over state and local governments, while the FASB maintains adherence to standards for not-for-profit entities. Both governments and not-for-profit organizations use an expenditure approach to accounting where budgetary needs are the first priority over financial statements. Governments however, have additional reporting items that fall within the purview of the power to summon resources. Governments and not-for-profit entities have a different business model than that of for-profit organizations, because governments and not-for-profit entities primary business goal is something other than profit. Governments differentiate themselves from not-for-profit entities by the ability to use taxes, licenses, and legislature as a means to levy revenue to pay for expenses. Not-for-profit organizations primarily use grants, investments, and contracts to earn revenue (Copley & Engstrom, 2007). Modified Accrual Method Since governments and not-for-profit organizations use a different business model than traditional businesses, a modified accrual method is used to account for assets, liabilities, and capital. The GASB and FASB allow for the creation of individual accounting entities called funds that track the funding and expenses for that entity.......

Words: 730 - Pages: 3

Budget Analysis

...report consists of an analysis of the company budget, identification of key variances and findings, and suggestions on operational changes. A description of the budget process will be presented to pinpoint variances and their causes. Based on these variances, operational changes will be suggested and explained while considering business ethics. Recommendations on particular component production as well as nonfinancial performance measures will be made and accompanied by supporting evidence. First, the following is a brief overview of the budget and budget process. Budgets are an indicator of the costs and revenues linked to each of the companies activities and a way of providing information and supporting mangement decisions throughout the year (Nobles et al., 2014). Budgeting requires managers to plan for the company’s future based on a formalized plan (Nobles et al., 2014). In order to begin this cyclical, formalized plan, companies must first establish their objectives (Nobles et al., 2014). Then the company formulates stratgies to achieve these objectives and creates a budget based on these strategies (Nobles et al., 2014). After the budget has been prepared, business operations (i.e. production, processing, etc.) begin and as financial periods end the results are compared to the initial budget (Nobles et al., 2014). Once the budgets are compared, the company can alter the existing strategy or develop an entire new one, and then continue on through the budget process......

Words: 1196 - Pages: 5

Budget Management Analysis

...Budget Management Analysis HCS/571 Financial Resource Management June 27, 2011 Dr. Lena Watson Budget Management Analysis Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made. Strategies to Manage Budgets Many strategies may be used to control budgets; managers and the chief financial officer of most healthcare organizations have the tools needed to manage the budget. By managing the budget the organization will be better prepared for the financial forecasts, which are the company’s future expenses. Some strategies and tools that will assist with managing the budget are zero based, activity based, performance based, cost variances and benchmarking. Zero based budgeting analyzes every expense within an organization and justifies the need and cost of each. Activity based costing is the gathering of the operating cost data, which is assigned to specific activities such as engineering. The performance dashboard uses the metrics of......

Words: 1406 - Pages: 6

Union Budget Impact Analysis

...UNION BUDGET 2010-11 Impact Analysis UNION BUDGET 2010-11: Impact Analysis CONTENTS BUDGET AT A GLANCE ............................................................................................ 1 UNION BUDGET 2010-11 : A MACROECONOMIC PERSPECTIVE ........................ 2 - 3 SECTORAL IMPACT ........................................................................................... 4 - 23 CHANGE IN CENTRAL PLAN OUTLAY..................................................................... 24 RECEIPTS .......................................................................................................... 25-26 EXPENDITURE ................................................................................................ 27 - 28 KEY ECONOMIC INDICATORS (Absolute Values) ................................................... 29 KEY ECONOMIC INDICATORS (Percentage Change Over Previous Year) ............... 30 UNION BUDGET 2010-11: Impact Analysis BUDGET AT A GLANCE (Rs bn) 2009-10 Revised Estimates 1) Revenue Receipts 2) Tax Revenue (net to centre) 3) Non-Tax Revenue 4) Capital Receipts (5+6+7)$ 5) Recoveries of loans 6) Other receipts 7) Borrowings and other liabilities * 8) Total Receipts (1+4)$ 9) Non-Plan Expenditure 10) On Revenue Account of which, 11) Interest Payments 12) On Capital Account 13) Plan Expenditure 14) On Revenue Account 15) On Capital Account 16) Total Expenditure (9+13) 17) Revenue Expenditure (10+14) 18) Capital Expenditure (12+15) 19) Revenue......

Words: 10541 - Pages: 43

Paradise (feat. Benjamin Ingrosso) | Suginami, Public Servant and Eliminator - The People on Dungeon Duty | 赛车游戏