Is the Budgeting Exercise of any Use?

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60 comments Page 1 of 6.

Deepak Barnwal said:   1 decade ago
Budgeting is really important and is of great use at any social or individual level. In any economy, the government receives huge funds through different taxes, duties, customer, etc. And, to ensure that these funds are invested correctly and proportionally as per the requirement, having a budget becomes imperative. It is exactly, like, in a household, where one plans how to spend one's income and how much to save for future. It helps in overcoming a financial problem strategically. And, for a country, it ensures that sectors which need special financing are given due importance. Some might say that budgeting takes a lot of time which makes the process lengthy and time consuming.

However, it is necessary that we ensure that funds are utilized most efficiently because while making a budget for a nation a lot of facts and figures needs to be taken into consideration. For example, which sector needs urgent and immediate finance. There might be sectors which received extra funds last time that are yet to be used. Hence, such sectors would need less funds this time. Budget also helps government to properly distribute the funds in an economy. So that, the gap between the rich and the poor in a country can be bridged.

Budget also affects the market decisions. It also brings confidence to the investors to invest their money into an economy. It acts as an indicator of economic status of not only a sector or industry, but also the economy as a whole. It also helps in attracting foreign investors to invest in an economy.

So at the end, I would like to conclude that making a budget at any level is a wise decision and must be continued. Without budget, the funds may go wasted and not utilized properly.
(117)

Akash Singh said:   1 decade ago
Budgeting is really very necessary because it helps the government to make a plan of how much it expenses in each sector and also of what the financial potential of a country is. It also makes the common people aware of steps taken by the government towards the economic growth of the country. Also they come to know about the extent to which the government is considering their basic needs.
(58)

Swagat said:   1 decade ago
In a vast & democratic country like India for proper usage of public money we must have proper planning. But preparation of this layout model of budgeting takes so much time & more than that time is wasted in implementing that plan. In this way around 8 months of a year is completed. Proper benefit of budget people gets for 3 to 4 months. In this sort span of time no real benefit of budget people get.

So I suggest that instead of annual budget our country should opt for biannual budget like some other countries so that required time will be there to implement the plan.

Proper vigilant system must be implemented to put a close eye on the system to check whether plans are getting implemented or not.

Most importantly our bureaucrats & politicians should stop encouraging corruption so that public money could be utilized for the public welfare.
(55)

Himanshu said:   1 decade ago
Budgeting is really important and is of great use at any social or individual level. In any economy, the government receives huge funds through different taxes, duties, customer, etc. And, to ensure that these funds are invested correctly and proportionally as per the requirement, having a budget becomes imperative. It is exactly, like, in a household, where one plans how to spend one's income and how much to save for future. It helps in overcoming a financial problem strategically. And, for a country, it ensures that sectors which need special financing are given due importance. Some might say that budgeting takes a lot of time which makes the process lengthy and time consuming. However, it is necessary that we ensure that funds are utilized most efficiently because while making a budget for a nation a lot of facts and figures needs to be taken into consideration.
(54)

Souvik mishra said:   1 decade ago
Budget exercising is necessary especially in a democracy like India. This is the way trough which people know how the govt is is utilizing its financial resources. It shows the growth and progress in GDP as well as economy. It also reflects on the financial strengths and weaknesses of the country and how to overcome it. What policies are framed so that it will help in developing new enterprises , what are foreign investments, about various taxation schemes etc. The most important thing is for common man budget is about various issues like price rise, tax rise, various subsidies and financial welfare.
So budget is something which makes a common man financially aware and sound and how can one improvise it.
(53)

Yogesh said:   1 decade ago
Budget means annual financial estimates of all revenue and expenses which is to be estimated with in a year.

Budgeting exercise according to me is of great use because it allows a common man to use money accordingly. It makes government to maintain is financial resources in a way so that utilization can be done properly. Budget also helps to estimate GDP gross domestic product of the country. It makes a country more corruption free as the amount of money invested is shown in the budget.
(43)

Venkatesh said:   1 decade ago
It is very important function in India so as to make many developmental thing in the near days. For example: if proper budget planning is not there in a family then one day or the other family will lead to financial crisis. The same will happen in the country.

There will be various problems arising if budget is not planned.

1. Several scams.
2. Wastage of money and time.
3. Less infrastructural development.
4. Low consumption of several resources available to use.
5. And many more.
(34)

Mohan Rao said:   1 decade ago
Most of the people associated the word budget with the Union Budget. The budgeting starts at individual level. As every mother or leader of the family allocates a specific percentage or amount of resources to different needs based on the requirements of the family members taking into account the uncertainties and price rises and change in preferences is one of the apt epitomes of budgeting.

Budgeting is a very useful exercise. It is an exercise where a person puts the economic problem into action. Problem of choice, scarcity of resources, hierarchy of wants, multiple uses of resources, problem of abundance, allocation of funds and optimum utilization of resources.

If a person doesn't earn or pay directly he may not understand the value of resources but as a person continually prepares budgets the price factor also fits into the linear programming problem of maximizing satisfaction by maximizing quality consumption which is subject to sacrifice of scarce resources.

Budgeting exercise also develops the art of bifurcating between fixed and variable natured expenditures, revenues and allocations. Budgeting exercise improves quality consciousness, maximizes the standard of living and even matures the financial understanding of individuals.
(31)

Sathya said:   1 decade ago
In my point budgeting exercise useful to raise GDP of our country, Budget is prepared to future growth and reduce the expenses. So the overall budget decided growth of India. But the fund has not properly utilized in Indian country, all benefits are not properly reached by people, so there is no growth in our country. Corruption is main reason, the government and people has to follow the rules and regulation strictly then only we can avoid the corruption.
(29)

Maduri said:   10 years ago
Hi,

In my opinion budget exercising is necessary. Because through the budget only we can get to know about how the government is utilizing its financial resources. The common man can get to know about many important facts about the spending of money by government through budget like in terms of education, agriculture, industries, transport, welfare etc like this. It makes the people aware about the spending of money to one's needs. It cautions to spend money carefully based on one's needs. Therefore budget exercising is necessary for the growth of economy and also to reduce unnecessary expenses.
(27)


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