Budget planning - an important part of financial planning, which is subject to the financial requirements of public policy.Its essence from an economic point of view is the redistribution of GDP between the elements of the financial system in the preparation and approval of budgets of various levels.
Budget planning is part of the budget process in the preparation, approval and execution of the budget.Its meaning is determined by the features that are displayed on the fiscal policy of the state, choose the direction of budget financing, based on the need for sustainable financing of economic and social programs of the country, establish rational forms of mobilization of revenues and the optimal structure.
In developing the budget for next year should be used only reliable indicators of income and expenditure of taxpayers and consumers' budget.Since the development of various sectors, regions and companies associated with each other, it is necessary to consider this relationship in predicting the capacity of the tax and other fiscal needs of the state.
Budgeting and Forecasting - two economic tools that allow the state to form a financial plan for the future, taking into account certain parameters.
most important condition of doing business for profit at any level is a continuous improvement of management practices.There is a peculiar doctrine among business people "manage - it coming."In connection with the outlook increasingly takes its position planning and budgeting on the basis of forecasting the future.If financial planning is carried out for a long period, the budget is calculated for one year (the budget) and be sure to be approved by a special legislative act.
Budget planning is carried out in the form of the development and validation of optimal development of the state with the help of the approved budget (he is - a kind of balance at the national level between income and expenses).This fiscal balance can be positive (a surplus) or negative (a deficit).
When budget forecasting using different mathematical methods: extrapolation, the use of which takes into account the results of previous periods;and expertise, which is based on estimates of experts in specific fields of science.
If budgeting (mostly) used at the state level, the budgeting creates a complete and effective management system and a separate business entity.At the same time, with well-constructed system of budgeting at the enterprise it is possible to achieve the strategic objectives defined by the company management.
The term "budgeting" in translation from English means 'plan'.
in medium-sized companies, it is usually limited to the creation of income and expenses.With an increase in turnover arises a need for a more detailed analysis of its economic indicators, all using the same mathematical methods.Thanks to the efforts and spent additional funds, the head will always have information about the state of their business in the whole company and its individual business units.
Budgeting should be used in attracting foreign investment company.For any investor wants to have a true and accurate information about its future business.
