A budget is a plan of expenditure and shows our intentions regarding the distribution of income for various items of consumption, savings and investment. It, therefore, helps in appropriate use of money for achieving the objectives within a prescribed time frame. Budgeting is a process of preparing a statement of the expected income and the proposed expenditure over a period of time. In a school set up, it is the process of preparing a summary of programmes of the school reflecting the expected resources and expenditures. The budget helps a school to achieve the set objectives. The specific purpose of preparing a budget is as follows:
Purposes of Budget:
1. It helps in planning school programmes.
2. It provides a cost-time framework for implementing school programs.
3. It permits the most appropriate use of school resources.
4. It guides the school principal to delegate authority to teachers and students in charge of various school activities as per their budget estimates.
5. It serves as a guideline to evaluate the school programmes.
6. It helps to monitor the implementation of various programmes.
7. It reflects the priorities attached to various objectives and activities of the school.