Question

Discuss in detail the types of budgets that the government and not for profit organizations prepare. Give an elaborate discussion of each budget to give complete awareness about each type of budget including its contents.

Answer 1

There are mainly 4 types of budgets for non profi organisations

1.capital budget :- it shows the datails about sale and acquisition of assets, with the help of this budget organization can plan optimal time of purchase of long term assets and best method of financing the assets.

2. Contract budget :- contract budget is specific for each grant program. Grantmakers stipulate an organization establish a specific budget to grant proposal and make seperate from the organization overall contract budget.

Contract budget is also known as Grant budget

3. Cash Budget:- It shows the details of short term cash inflows and out flows and it helps us to allow to make ensure the availability of cash flows for current expenses. It also functions as a tool for determining cash overage and shortages.

4. Operating budget :- it is organizational financial plan which shows expected revenues and costs for current operations.

GOVERNAMENT BUDGET

There are different types of governament budget

1. State budget :- These are prepares its own budget by respective states in the country.

2. Union Budget :- This budget is prepared by the central governament for whole country.

3. Performance budget :- These are prepared by central ministers amd departments which deals with development activities.

4. Supplementary budget :- This budget is prepared as forecast of the coming year budget regarding revenues and expenditure

5. Zero based budget :- this is the budgetary process in which each ministry has to justify its entire budget in detail, in this all the governaments expenditures must be justified for each new period .