Describe the Library Budget & Methods of Library Budget
Library
Budget preparation is a planned process in which the expenditure and income of
the institution is accounting for a particular period of time.
A budget is a schematic document and a financial distribution that provides details of proposed income and spending usage for a fixed time (usually for one year).
It is a
means of controlling income and expenditure, how much money is to be received,
and how much is to be spent.
In fact, The library budget is an extremely important instrument of control, communication,
coordination, evaluation, and motivation. The appropriate feature of the budget
is also commonly applied in the library budget.
Budget Formation Methods
Every library, however small it may be, is governed by a budget.
Librarians and senior staff prepare the budget in most of the libraries.
The budget
is sent to the higher authorities for approval and after scrutiny and review,
it is approved.
There are
some methods of creating a library budget which is traditionally practiced in
the library and some newly developed methods are also used.
 |
| Library Budget | Methods of Library Finance & Budget | Library Management |
Following are the methods of Library budget formation: -
1.
Item-based or linear or increment based budget - It is generally the most the traditional method in which the current budget is prepared based on the past
expenditure on each item.
Hence, it is
also called a historical budget. In this, the budget is prepared by increasing
the allocation of each item of expenditure by 5 or 10 percent each year.
Assuming that all present is necessary and important. This budget item is
divided into broad categories.
The
advantage of this method of budgeting is that it is relatively easy to prepare,
present, and understand.
2. Formula
Budgeting - In this method, a formula based on financial norms and norms are
accepted. This appears to be a detailed and dynamic method. Hence saves a lot
of time. But it is not responsible for minor variations in each library and its
consumers and services.
3. Program
Budgeting - This method is a detailed method of item-based linear method. For
what purpose is this money being spent? And how to plan money for each program?
Answers questions This method has three stages, originally formulated in the
Hoover Commission Report (1949). this is
A. Person's
purpose statement
B. Thorough
consideration of alternative methods and
C. Best
logical selection based on effectiveness and efficiency.
This
budgetary law is concerned with focusing the funds for the activities of the
library and the programs and services to be provided under the library scheme.
4.
Performance Budgeting - This budget is similar to the budget method program
etc. but in it, the importance is shifted from program to execution.
The
expenditure is based on the performance of the activities. Management
techniques such as cost-benefit-value analysis are used to measure performance
and establish criteria.
5. Planning
Program Budgeting System (P.P.B.S: Planning Programming Budgeting System) - This method of the library budget formulation was first proposed in 1961 by USDOD. Two
basic elements of PPBS are budget formation and system analysis.
Which is an
extension of the program budget that incorporates system analysis and other
cost-effective processes to provide PPBS alternative approaches to benefits
that establish a rational basis for choosing an alternative program?
This method
combines the superiority of both the budgeting program and the budgeting
execution. The focus of this method is on planning.
It begins with the
establishment of the objective and ends with the representation of the
services. The control side of measurement is also a side of PPBS.
There are
large discrepancies in its practice and the lack of standards for the
measurement of the program are difficulties in the implementation of PPBS. It
also has other implementation-related problems.
(1) to pay
attention to how to do what to do instead
(2) failing
to provide an operating device
(3) Lack of
a device structure to evaluate the effect
(4) To
emphasize the continuous evaluation of existing programs, instead of focusing
on increasing new programs.
(5)
Calculations for costs to be based on planning decisions.
6. ZBB
(zero-base budgeting) - This method, developed by Peter Phyrr in the early a decade of 1970, requires thorough knowledge of the institute, much time effort,
and training.
This method
emphasizes the need to justify the current program and each part of each year's program, unlike PPBS, and unlike historical budget formulation.
When an appropriate officer can assure that the program is appropriate and eligible for
financial assistance.
This method
does not give what happened in the past but emphasizes on the current
activities. In other words, each year has to justify renewed financial demand.
To Know More About Library Science Click on the Link Given Below
| ||
1. Library and Society
| ||
2. Library Management
| ||
3. Library Cataloging
| ||
4. Library Classification
| ||
5. Information Source
| ||
6. MCQs on Library Science
| ||
8. Jobs in Library Science
| ||
Join Library Science Group for Latest Updates
| ||
Post a Comment