Question

1) Explain the importance of budgeting as a managerial tool in government organizations.

2) Explain the main public expenditures and the rules guiding these disbursements.

Answer 1

1. Importance of Budgeting as a managerial tool in Government organisations :

* It helps in controlling and managing the resources which are scarce.

* It helps in focusing on projects which will be beneficial in near future and will be good for the economic development.

* Budgeting helps in gathering information and tells us about the feasibility of the projects.

* Budgeting helps to keep the expenses in line.

* It helps in developing policies and implementing them to get best results.

* Governments local or central have to do with the limited resources or budget given.

* All the departments are run by Budgets and then budgets are approved.

* All the Tenders are given by budgets.

* It helps to achieve efficiencies in work.

* Guides in developing Fiscal and monetary policies.

* Budgeting helps to set forth the dates by which works shouldbe done and are audited.

2.

Main public expenditures :

* Defense

* Education

* Infrastructure

* Welfare activities

* Social Crisis

* Foreign Aid

* Public Utilities

Rules guiding these disbursements :

* Government expenditure and revenue should be balanced to achieve Maximum Social Advantage.

* They should be made with an aim to avoid maximum wastage and should be productive and efficient.

* These expenditures should be sanctioned by a proper authority.

* Such expenditures must not create any deficit for the government.