Is the Budgeting Exercise of any Use?

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.

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.

Hi Guys,

Having difficult life a proper budget planning gives us a proper way to accomplish our tasks. We all know very well that how many and which types of problems we have to face while completing our goals so at that time a proper planning of budget always be useful to show a better way to do the task. We can not say that we should keep focus only on parliament budget system because our life also runs well with the help of our personal proper budget system in which we use our handsome experience to complete our work on time. Budget is nothing but a pocket of all the people to do something in their life.

Parliament's both houses (House of the people and council of states) every year pass the bill for our nation's growth and they spend money as per requirements of the areas of growth so that our developing country can grow up as soon as possible among the other countries. There are various government areas which are being run well and all the employees having proper management get their salary on time these all proper activities are taking place because of good budget system with us. So there is no doubt in a budget system in our country that it is extremely important.

Hi Good Evening,

We always need Budget Our life day to day activities as well as long terms plannings. It plays important roles in this in Here is some importance of Budget in any Company or Individual.

As in Routine life.

1) We always By some luxury items as per our incomes sources. If we save something form for income then we use it in other items, but will Saving comes from Budget Planning.

2) Budget is played important role to enjoying Holidays because we decided to where to go and stay as per our limit (Budget).

3) Marriage, we plan it as per our Budget.

Etc.

Roll in Company/Govt. Sector.

1) Company decides the Payroll as per their budget,

2) and set their limit for Expenses, to achieve the Budgeted Target.

In shot same as in Govt Sect. Income and Expenditure Budget play major role to control the Departments,

Budgets are prepared on the Basis on Past Actual (Experience) and make new Target achieve them.

Although, Actual Expenses are not equal to Budget, there is always deviation between Actual and Budget, But it important to control extraordinary expenses.

Thanks.

Mahesh Syal.

I think the democracy is making the country hollow from inside the rights given to ministers and also the citizens are misused. Any body can say anything and after giving it a name of my views do not interfere or right to speech I think this is not correct it's time that we should think about it more deeper.

What is the need of students in a university to indulge in protests or in politics. This is misuse of democratic rights. People can do anything now, we should delete the word self discipline because it is not present in Indians after learning many lessons.

In a democracy the real motto of politics is like divide and rule policy. So really we are not modernizing we are going into the history. The time has come to follow any laws (some) of china, which is communist country, but still progressing with great speed and the people there are not living with fear of the government And they (ministers people in china) are given rights and freedom that much is required and which they deserve not like democracy free to do anything anything means anything no limits.

Hi guys..

When we are talking of budgeting exercise we are not only talking about government and union budget. Budgeting exercise here means that calcultaion of all expenses in the particular stream. Now the question is it important to exercise the budget? There are many points in favour as well as against it.

Points supporting the budget exercising
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1> A clear database of all the expenses as well as saving is made.
2> The expenses happen in a planned way, that avoids from sudden shocks.
3> Neat Budgeting habits like proper insurance, stopping irreglarities are developed.

Points against the budget exercising
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1> In most of the cases expenses for maintaining the budget exercise is more than the saving it fecthed.
2> Valuable time is wasted in maintaing such database which does not fetches anything.


Even though we have some points opposing the budget exrcising, but the weight of supporting points are much more than them. So its better to exrcise budget.

Hello friends,

In my childhood in every year I were listening about budget. AT that I was pretty small to get these things. Yet today I am in think how budget effects there may have following reasons:

1) As everyone knows to purchase or buy anything we require money. In the same sense for providing facilities to citizens such as transportation, education, security etc. Country needs money. This money comes from the pockets of citizens in the form of taxes.

2) For proper allocation of money taken from citizens the budget is developed. In the budget requirement of people in the country is studied as well as development is considered and the fund is allocated.

3) If the proper balance of the money in various sectors for equal growth of various sectors.

When there is no use of budget.

1) When the country has no power to control over imports such as electronics good, oil prices. I don't know why Indian gov considers these uncontrollable things in our budget because of these things budget fails.

Thank you.

Hi friends, I am Deepika and I would like to share my views on this topic.

I think budgeting is important in every sector of our life. Like in a family, people plan according to their future that means they plan their expenditure, saving according to their earnings for their future use. They want to prepare themselves for any situation that may occur in the future.

Likewise budgeting on a national level is also useful as if it is planned properly and implemented keeping in mind about each and every section of the society then it could be very helpful for the development of those are not able to perform just because of low resources. So what is the requirement of the time is to properly manage the resources so that people can benefit from that.

Like if village people are not able to afford their child's education in their income then if the budget is in the right direction then we can help the child by giving the help from that budget.

Thank you.

Hello friends.

According to my opinion budgeting exercise is most important for common people as well as government. Middle class and below the middle class people must have the budget that is expenditure for month or year depending upon their income for the month or year if they did budget exercise well they will lead their life without any hurdles but if they do not plan well everything is a big hurdle for them so it is important for people. But for government it is more important to lead the country or state without any problems why?

Because if the government allocate some amount of budget for one period of time it must fulfill the required needs for that period of time, other wise government have to face more problems from they respected peoples of that country. So budgeting exercise is most important for people and government, if they plan very good budget they will enjoy that much, but if they did wrong budget they have to suffer.

Budget is a statement of estimated receipts and expenditure. For a family, a company, an organisation and the country-budgeting is necessary. Budgeting is essential in a family to plan how the income will be spent and allocate money for health, education and other expenses besides saving money.

Budgeting is very important for the government It provides an insight of the receipts (estimated) and expenditure (estimated). It shows how the govt will spend the tax and non tax receipts it receives from citizens. Budgeting helps to allocate money for different sectors of economy and calculate budgetary surplus/deficit. Accordingly suitable policies can be adopted by government Budgeting is very important in part of planning and forecasting and is necessary for every citizen to be aware of Union budget and what to expect from the govt expenditure and how the taxes are utilised.