Schools prepare two types of budget from the point of view of time coverage. A budget that covers the coming financial year is known as current budget.
Similarly, a budget that covers more than one year and keeps in view the long range perspective is known as long-term budget. Several times in a school, one has to prepare budget for specific programmes. This is known as programme budget. However, in most schools while preparing a budget one refers to previous year’s budget and plans the income and expenditure for the current year. This is known as traditional budget. All these types of budget are discussed in the following paragraphs:
(i) Current Budget:
We know that schools receive grants from the Government for a year for carrying out many of their activities. These grants are for salaries of teaching and non-teaching staff, purchase of equipments, maintenance of building, sanitary materials, contingency, student services and the like Students also pay tuition fees, examination fees, sports and games fees, medical fees etc. per term or year. The money that a school gets from these sources is the income of the school in a year. Within that year a school organizes some activities for pupils. These activities include teaching, sports, cultural programmes, examination, construction etc.
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(ii) Long-term Budget:
Schools are established by Government or private organisations with certain objectives. In order to achieve the long-term objectives, a school plans well in advance and continues to work year after year to achieve these objectives. Such plans layout the possible sources of school’s income and possible heads of expenditure for more than one year, generally five years. But, plans are also prepared for 10-15 years or even more. Taking into consideration such long-term budget the fiscal budget of a school is generally worked out. The long-term budget provides a perspective and priority for the current budget to be prepared.
(iii) School Programme Budget:
This budget is prepared by a school for a specific purpose. In fact, i! Serves as a guideline for carrying out a programme and is called a “School Programme Budget”. Suppose for example, a school wants to organize an essay competition. For this programme, school has to lay down the income it will have in the form fees, sponsorship from some agencies etc. After estimating the income, school has to plan the expenditure needed for organising the competition. This expenditure could
be for purchase of stationery, hiring the venue, contingency, prizes etc.
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In brief it can be said, that, when a budget is prepared for a specific purpose with respect to specific programme and serves as a guideline to carry out the programme, it is called School Programme Budget.
(iv)Traditional Budget:
A traditional budget does not lay emphasis on purposes to be achieved, but, on the issue of generating income and expenditure on different heads. It is prepared with reference to the previous year’s budget where possible sources of income and heads of expenditure remain the same. It means it does not deviate from the budget of the previous year and follows the tradition. Certainly it requires any price hike to be kept in mind and raise the amount under each head accordingly. In most schools, except a few progressive ones, it is the traditional budget which is prepared.