BUDGETING IN NURSING PRACTICE
INTRODUCTION Budget, as a control device is an extension of planning. After the planning
and programming decision, the approved programme is translated into a totaled statement of
monetary requirements and financial consequence. Budgeting, though primarily recognized as a
device for controlling, becomes a major part of the planning process in any organization
budgeting is done for indicating the expected results of the business and the possible future lines
of action to be followed for the attainment of such results. Expected results are projected either
in financial terms or in other numerical terms like units of products person-hours machine
hours.etc
MEANING OF BUDGET
The word ―budget‖ derived from the old English word ―budget tee‖ means a tack or pouch
which the Chancellor of the Exchequer use to take out his papers for lying before the parliament,
the government, financial scheme for the ensuring year.
DEFINITION
Budget is a concrete precise picture of the total operation of an enterprise in monetary terms‖
(HM Donovan) ―Budget is a operation plan, for a definite period usually a year- Expressed in
financial terms and bused an expected income and expenditure‖
PURPOSES The purposes of budgeting are:
1. Budget supplies the mechanism for translating fiscal 1-year objectives into projected monthly
spending pattern.
2. Budget enhances fiscal planning and decision marking.
3. Budget clearly recognizes controllable and uncontrollable cost areas.
4. Budget offers a useful format for communicating fiscal objectives.
5. Budget allows feedback of utilization of budget.
6. Budget helps to identify problem areas and facilities for effective solution.
, 7. Budget provides means for measuring and recording financial success with the objectives of
the institution.
FEATURES OF BUDGET
It should be flexible
It should synthesis at past, present and future.
It should be product joint venture, co- operation of executives / department heads at
different levels of management.
It should be in the form of statistical standard laid down in the specific numerical terms.
It should have a support at top management throughout the period of its planning and
implementation.
PRINCIPLE OF BUDGET
Budget should provide sound financial management by focusing on requirement of the
organization.
Budget should focus on objectives and policies of the organization. It must flow from
objectives and give realistic expression to the way of realistic such objective.
Budget should ensure the most effective use of scarce financial and non financial
resources.
Budget requires that programme activities planned in advance.
Budgetary process requires consistent delegation for which fixed duties and
responsibilities are required to be allocated to managers at different level for framing and
executing budget.
Budget should include co-ordinating efforts of various departments establishing a frame
of reference for managerial decision and providing certain criteria for evaluating
managerial performance.
Selling budget target requires an adequate checks and balance against the adoption of too
high or too low estimate, almost care is a must for fixing targets.
Budget period must be appropriate to the nature of business or service and to type of
budget.
Budget is prepared under the direction on the supervision of the administration or
financial officer.
Budget are to be prepared and interpreted consistently throughout the organization in the
communication in the planning process
INTRODUCTION Budget, as a control device is an extension of planning. After the planning
and programming decision, the approved programme is translated into a totaled statement of
monetary requirements and financial consequence. Budgeting, though primarily recognized as a
device for controlling, becomes a major part of the planning process in any organization
budgeting is done for indicating the expected results of the business and the possible future lines
of action to be followed for the attainment of such results. Expected results are projected either
in financial terms or in other numerical terms like units of products person-hours machine
hours.etc
MEANING OF BUDGET
The word ―budget‖ derived from the old English word ―budget tee‖ means a tack or pouch
which the Chancellor of the Exchequer use to take out his papers for lying before the parliament,
the government, financial scheme for the ensuring year.
DEFINITION
Budget is a concrete precise picture of the total operation of an enterprise in monetary terms‖
(HM Donovan) ―Budget is a operation plan, for a definite period usually a year- Expressed in
financial terms and bused an expected income and expenditure‖
PURPOSES The purposes of budgeting are:
1. Budget supplies the mechanism for translating fiscal 1-year objectives into projected monthly
spending pattern.
2. Budget enhances fiscal planning and decision marking.
3. Budget clearly recognizes controllable and uncontrollable cost areas.
4. Budget offers a useful format for communicating fiscal objectives.
5. Budget allows feedback of utilization of budget.
6. Budget helps to identify problem areas and facilities for effective solution.
, 7. Budget provides means for measuring and recording financial success with the objectives of
the institution.
FEATURES OF BUDGET
It should be flexible
It should synthesis at past, present and future.
It should be product joint venture, co- operation of executives / department heads at
different levels of management.
It should be in the form of statistical standard laid down in the specific numerical terms.
It should have a support at top management throughout the period of its planning and
implementation.
PRINCIPLE OF BUDGET
Budget should provide sound financial management by focusing on requirement of the
organization.
Budget should focus on objectives and policies of the organization. It must flow from
objectives and give realistic expression to the way of realistic such objective.
Budget should ensure the most effective use of scarce financial and non financial
resources.
Budget requires that programme activities planned in advance.
Budgetary process requires consistent delegation for which fixed duties and
responsibilities are required to be allocated to managers at different level for framing and
executing budget.
Budget should include co-ordinating efforts of various departments establishing a frame
of reference for managerial decision and providing certain criteria for evaluating
managerial performance.
Selling budget target requires an adequate checks and balance against the adoption of too
high or too low estimate, almost care is a must for fixing targets.
Budget period must be appropriate to the nature of business or service and to type of
budget.
Budget is prepared under the direction on the supervision of the administration or
financial officer.
Budget are to be prepared and interpreted consistently throughout the organization in the
communication in the planning process
