Question

Why is it important for public government managers to know how to read a budget? What information would they be able to obtain from the budget document and how would it help them be more effective managers?  

Answer 1

it is important for public government managers to know about how to read a budget because public government managers will be able to know about various financial aspects of the business and budget I will also act as a measure of of future performance of the company and it will also reflect the expected performance along with the comparison with the actual performance.

Public government managers can use their skill of judging the financial statement and forecasting the performance of the company in the long run by making a budget and this budget will also provide them an idea about the deviations which are incurred by the company because these will be worked upon in order to maximize the rate of return of the company and these will also provide for the proactive management of the adverse economic scenario so budget is of utmost importance to a public financial manager.

2. They will be able to obtain information like various types of expenditures of the Government and they will also able to gather various types of subsidies which are provided by the government along with the taxes collections and other expenses on the income on the part of government.

project can also help them estimate the performance of the company in the future and it will also help them determine the level of variations.