Program budgets


The program budget is disconnected from the traditional concept of the budget concept. But its adoption implies the acceptance of fundamental elements, such as the following:
  1. The objectives of spending. Each program is the ordering of resources available to the management centers in order to achieve their objectives.
  2. The programs. They are combinations of identifiable means oriented to the achievement of a certain objective to be achieved by a management center.
  3. The indicators. These are elements related to the objectives of the budgetary programs which provide quantifiable information. They have a descriptive and evaluative character.
  4. Monitoring, control and evaluation of management results. In a program budgeting system, it is essential to establish some type of control related to the execution of the programs and their final results.
Program budgeting can be defined as a technique employed by the private and public sector, which allows it to carry out projects or programs by establishing activities, objectives and their execution cost and, at the same time, rationalizes public expenditure.
In other words, it can be said that the program budget, are the things and means that the government acquires to carry out its functions. The program budget is an instrument of budgetary programming as its function is to combine available resources in the future.

The budget can also be defined as a series of programs carried out by each of the areas of the company, so that the distribution of resources is directed towards activities and have better benefits. 

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