Budget

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Introduction
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It is also an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. But now-a-days a budget is something more than an estimate of revenue and expenditure. There is no alternative of budget for the implementation of development planning and conduct any type economic activities. The whole policy and programmers of the government is reflected in the budget.

Budget
Meaning: The word ‘Budget’ has been derived from a France word ‘bougette’ which means a purse. According to new oxford advanced learner’s dictionary, budget means the money that is available to a person or an organization and a plan of how it will be spent over a period of time- a monthly/ an annual/ a family budget. Definition: In generally, budget is the process of calculating income and expenditure. A budget is a document that contains financial plans. It is a description of a financial plan. Normally a budget describes a period in the future not the past.

Plan for
Saving
Borrowing
Spending

Figure: Budget

“Budget is a report and proposal that is the instrument by which all the process of financial administrations are correlated and coordinated.” * Willoughby
“Budget is the financial plan of government for a definite period.” * Taylor
“Budget is a document containing a preliminary approved plan of public revenue and expenditure.” * Rene Stourn
After above the discussion we can say that, budget provides a forecast of revenues and expenditures and enables the actual financial operation of the business to be measured against the forecast. So, the national budget is a plan and a concrete program of action for the activities that government will spend funds on in pursuit of development goals. Simply, budget is a financial statement which contains estimate of revenue and expenditure for a year.

Estimate

REVENUE EXPENDITURE Figure- Budget

Types of budget
On the basis of income and expenditure budget can be divided in two types - Balance budget Surplus budget Unbalance budget Deficit budget

There are two constituent parts of the Annual Financial Statement or Budget, as it is called: a. The Consolidated Fund and
b. The Public Account of the Republic.

Budget

Public Account of the Republic Consolidated Fund

Development Budget

Revenue Budget

Charged Expenditure

Non- Charged Expenditure

Figure: Parts of budget

The legal frame work of Budget preparation
The constitution of the People’s Republic of Bangladesh provides the basic legal frame work for the government’s budgeting. Articles 81 to 92 of the constitution outline the requirements of budgetary procedures, in particular: Article 87 relates to the lying before the parliament of the statement of receipts and expenditure for...
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