INTRODUCTION

Derived from French word Baguette meaning Sack or Pouch.

 Bag used by the British chancellor to keep his papers to be presented to the parliament.

Present sense of the term used was for the first time in 1873.

First Budget presented in 26th November 1947 by finance minister Sir R K Shanmugam Chetty.

Plural Budget Railway and General Budget.

SOME INTERESTING FACTS

 Morarji Desai holds the record for presenting the maximum number of Budgets.

 He holds the unique distinction of presenting the budget twice on his birthday(1964 & 1968) Both leap year.

 Initially, budget papers were printed in Rashtrapati Bhawan. But in 1950, the budget papers were leaked.

 Now it is printed in the basement of a north block

HOW TO APPORACH A BUDGET

 First, find out how your accounting software deals with budgets.  Traditional budgets.  Revenue is particularly problematic.  There are two main approaches to budgeting: I. The projections approach.

II. The required profits approach

MONITORING THE BUDGET

BUDGET TYPES
 Sales budget An estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals.  Production budget an estimate of the number of units that must be manufactured to meet the sales goals.  Cash flow/cash budget a prediction of future cash receipts and expenditures for a particular time period.  Marketing budget an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.  Project budget a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses.