Background of the Study
It can be said that success begins and ends with a perfect strategy. In order to grow a business and succeed in a volatile marketplace, it is important to have that strategy, and plan for the future. Many business professionals agree that the best way to get ahead is to design and implement an effective strategic business plan. While this can be a somewhat daunting task, there are actually many strategic planning resources available to help get you started down the right path.
One of the most non-value-added activities within financial management is budgeting. Budgets are prepared to allocate and control how resources will be used in the future. Unfortunately, the future is hard to predict and upper-level management doesn't always communicate with people who prepare budgets. Because of poor communication and planning, budgeting becomes an exercise in futility.
In fact, President Aquino sign last December 13, 2010 a P1.64 trillion ($37.1 billion) national budget for 2011. The early approval of the budget will enable the government to embark on its infrastructure and social projects as early as the first quarter of 2011. The 2011 budget is known as the "Reform Budget." Budget Secretary Florencio Abad said the budget reflects the President's commitment to lift the nation from poverty through honest and effective governance. This only means that our president is planning righteously to the budget of the Philippines for the benefits of the Filipino people.
Here in Tagum City, budgeting should be a dynamic process within strategic planning. The more Tagumeños budgets can react to change, the closer budgeting will be to a value-added activity. It is an observation in UM Tagum College that most of the students are budgeting their money, time and resources because of poverty and scarcity. Budgeting is the setting and allocation of the capital which is then used in the proper way to achieve the set or... [continues]
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