Resource Allocation
RESOURCE ALLOCATION
Resource allocation refers to the distribution of resources, and in particular finance, from the centre to peripheral levels. It generally concerns broad levels of aggregated financial resources. Budgeting implies the more detailed determination of precisely how these funds are to be used. Given the importance we have placed on planning as a process that leads to action, budgeting and resource allocation are major planning instruments.
Basis for Resource Allocation * Public goods and the rationale for public intervention. * Marginal utility and cost effectiveness. * Allocative efficiency and cost benefit analysis. * Citizens’ preferences and collective decision making. * Equity, incidence and targeting.
WHAT IS A BUDGET?
A budget is an amount of money an organization plans to raise and spend for a set purpose over a given period of time. It is a chart of numbers representing the amount of income and costs allocated for the chosen activity.
Budgets are usually prepared in advance of receipt of income and of expenditure on costs. There is an agreement between investor and implementer on the appropriate allocation of monies before implementation begins. To make this allocation more specific, expenditure is subdivided into separate "line items" of the budget, representing all the types of costs that are expected to be incurred in the chosen activity.
Five budgeting methods
There are also five typical methods to budget a design project. The first four methods are most common, and the fifth reflects what happens typically. Consider using as many of the four budgeting methods as possible on every project. At a minimum, use at least two methods. This creates “checks and balances”— the hidden pitfalls in each method are compensated for by the strengths of the others.
1. Upward or zero-based budgeting – starts at the most detailed level and moves upward. The estimator typically uses the project plan task
Resource allocation refers to the distribution of resources, and in particular finance, from the centre to peripheral levels. It generally concerns broad levels of aggregated financial resources. Budgeting implies the more detailed determination of precisely how these funds are to be used. Given the importance we have placed on planning as a process that leads to action, budgeting and resource allocation are major planning instruments.
Basis for Resource Allocation * Public goods and the rationale for public intervention. * Marginal utility and cost effectiveness. * Allocative efficiency and cost benefit analysis. * Citizens’ preferences and collective decision making. * Equity, incidence and targeting.
WHAT IS A BUDGET?
A budget is an amount of money an organization plans to raise and spend for a set purpose over a given period of time. It is a chart of numbers representing the amount of income and costs allocated for the chosen activity.
Budgets are usually prepared in advance of receipt of income and of expenditure on costs. There is an agreement between investor and implementer on the appropriate allocation of monies before implementation begins. To make this allocation more specific, expenditure is subdivided into separate "line items" of the budget, representing all the types of costs that are expected to be incurred in the chosen activity.
Five budgeting methods
There are also five typical methods to budget a design project. The first four methods are most common, and the fifth reflects what happens typically. Consider using as many of the four budgeting methods as possible on every project. At a minimum, use at least two methods. This creates “checks and balances”— the hidden pitfalls in each method are compensated for by the strengths of the others.
1. Upward or zero-based budgeting – starts at the most detailed level and moves upward. The estimator typically uses the project plan task
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