City Budget Essay Example | Topics and Well Written Essays - 500 words

City Budget - Essay ExampleThis research will begin with the statement that in making a figure a number of considerations are factored into the decision-making process which is a prerequisite in budgeting. A budget which is a financial plan aids in ensuring that gold are not misappropriated and only identified stuff is dealt with as per the plan. It shows estimate expenditures and income or revenue sources to finance the expenses. This may be in dramatis personae of the different types of loans and grants, taxes, bills and the expenses include payments of human resources, initiation of new development plans, repayment of forwardly taken loans amongst others. According to the Scott, a budget preparation requires a muse and evaluation of previously made budgets to understand the trend and the constants that are independent of time. Generally, the average of the first seven years is considered because it gives a true representation of the previous budgets. It is important to note t hat there are years of economic depression and inflation in a budget. It should be prepared on time and the earlier years actual financial activity should form the basis of your start. The revenue sources are analyzed and conservative amounts are given, no overestimates are include in a budget forecast. A combination of re up-to-the-minute and fixed/investment of years expenditure is added to find the general expenditure of the current year and a liberal approach is applied to indicate expenditure in expenses, it is better to overestimate than to underestimate.