What effect does the change in elected officials have on budgeting? What long-term effects might result from this change?
What effect does the change in elected officials have on budgeting?
The change in elected officials will have a dramatic effect on budgeting. In order to understand why the change in officials will change the way budgeting will be process, we have to understand the definition of a budget. A budget is a financial plan, which displays the total money available for used. The budget is prepared by the governing elected officials of the town or city. A budget will provide financial as well as operational cost of governing a city or state. (1) The process of developing a budget is strategic planning that is an important process in developing a budget. The components of a budget includes operating and capital costs. (1) The operating budget contains expenditures for personnel services, materials and supplies, contractual services, utilities, and so much more. The capital costs contain capital improvements, facilities and equipments. (1) All budgets must consist of both an operating and capital funding and costs. The funds of the budgets are grouped into several types. Some of the different types of funding are :
General fund - these are chief operating fund that involved all financial transactions.
Revenue funds- funds that are restricted for special purposes.
Capital project funds
Enterprise funds - used for operations that are financed and operated by business enterprises.
Trust and agency funds - funds held by the government as trustee for individuals and private organization.
Internal service funds - funds for special activities and service performed by departments.
The major components of a public budget are the revenues and the expenditures. The revenues are funds that are collected through various means like taxes. (1) Expenditures are funds that are used for spending on specific programs. (1) The revenues sources are dependent on the level ...
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