Incremental Budgeting

November 23, 2015

Incremental budgeting is a way of budgeting where the future allocations are based on current allocations. The new budget is prepared by increasing or decreasing the current budget by certain amounts or percentages. The increased amounts are arrived through a fairly simple calculation and the scope for...

Principles of Budgeting

November 23, 2015

There are a few principles followed in budget preparation exercise. These are as follows: Principle of Annuality This implies that a budget is prepared every year on annual basis. One year is considered ideal period for budget because it’s an optimum period for which the legislature can...

Effective Revenue Deficit

November 19, 2015

The definition of the revenue expenditure is that it must not create any productive asset. However, this creates a problem in accounts. There are several grants which the Union Government gives to the state / UTs and some of which do create some assets, which are not...

Relevance of Budget

March 3, 2015

“Budgeting is at the heart of administrative management.” Discuss.

Zero-based Budgeting

February 12, 2013

Zero-based budgeting is a method of budgeting in which all expenses for each new period must be justified. Under zero-based budgeting, no reference was made or considered of previous years. The budget request has to be evaluated thoroughly with its commencement from the zero-base. Evolution of zero-based...

What is Economic Survey?

February 28, 2011

Economic survey is presented every year shortly before presenting the Union Budget. This document sets the backdrop for the Budget. The rationale of an Economic survey is that the Parliament can better appreciate the Budget proposals with the background Knowledge provided by the Survey. Economic Survey also provides an...