What is the difference between budget and budgetary control in the public sector?

What is the difference between budget and budgetary control in the public sector?

Budget is an estimation of revenues and costs for a period. Budgetary control is the process where budgets are prepared at the beginning of the accounting period to compare and analyze the actual results at the end of the accounting period.

What is budget and budgetary control?

Budgetary control is the process of determining various actual results with budgeted figures for the enterprise for the future period and standards set then comparing the budgeted figures with the actual performance for calculating variances, if any. A budget is a means and budgetary control is the end-result.

Why is budgeting important in the public sector?

Budgeting within government is important because it supports government projects and programmes and it involves financial decisions so that departmental goals are achieved such as service delivery goals. Most importantly, the effective implementation of a budget depends on the budgeting system within a country.

What are some of the budgeting approaches used in the public sector?

The 6 widely used budget setting techniques are:

• Incremental budgeting.
• Zero based budgeting.
• Cash limited budgeting.
• Resource restricted budgeting.
• Activity based budgeting.
• Contingency budgeting.

What is budgetary control in public sector?

The role of budget and budgetary control has become a very important financial control and accountability device in the public sector and provides a formal basis for monitoring the progress of the entire economy. The organization must economize resources and discover the means of achieving a specific plan.

What is budgetary control in public sector accounting?

Budgetary control is a system whereby the budgets are used as a means of planning and controlling costs. Budgeting lays down as to what is to be attained and how it is to be attained while control ensures that the objectives are realised and actual results do not deviate from the planned course more than necessary.

What type of control is budget?

Budgetary control is a system of controlling cost which includes preparation of Budgets coordinating the departments and establishing responsibilities comparing performance with budgeted and acting upon results to achieve the maximum profitable.

What are the functions of public budget?

Some of the important roles of budget in the national economy are: Prioritization of the allocation of the public resources. Achieving policy goals through prudent financial planning. Establishing accountability regarding the usage of the tax payers money.

What is budgetary control and why is it important to the government?

Government budget is used to prevent business fluctuations of inflation or deflation to achieve the objective of economic stability. The government aims to control the different phases of business fluctuations through its budgetary policy.

What is public budgeting in public administration?

Public budgeting is a field of public administration and a discipline in the academic study thereof. The economist views budgeting as a matter of allocating resources in terms of opportunity cost where allocating resources to one consumer takes resources away from another consumer.

How budget is prepared in public sector?

The budget is prepared by the Finance Minister with the assistance of number of advisors and bureaucrats. The budget has four stages viz., (1) estimates of expenditures and revenues, (2) first estimate of deficit, (3) narrowing of deficit and (4) presentation and approval of budget.

Is budgetary control necessary in public sector?

It is not peculiar to only government parastatals but also necessary to manufacturing organization and private sector. The study will contribute towards enhancing importance of budget and budgetary control in public sector. It will also be useful to general public in order to enlighten and educate them on the role of budget and budgetary control.

What is the public sector budget presentation?

Budget Presentation: Public sector budgets may be prepared based on sectors within the public sectors which are then consolidated into the main budget. Sometimes, each sector is supposed to organize the budgets according to the programmes that the sector plans to undertake for the ensuing period. would lead to the budget.

What is public involvement in budgeting?

Public Involvement: Public sector budgets involve the views of the public in its preparation through the use of a bottom-up approach, the administration of public expenditure survey and budget hearing (A meeting often open to the public, where individuals can comment or ask questions about a proposed budget).

What are the laws and regulations of budgeting in Ghana?

Budget regulations: Budgeting in the public sector is highly regulated. In Ghana, the constitution, public financial management Act and IPSAS 24 regulates the preparation of public sector budgets. These laws cover all public sector institutions in Ghana. Private sector budgets are firm-specific.