Introduction

The Fiscal Planning and Estimates branch is responsible for compiling, monitoring and annually updating government revenue, spending, debt and capital forecasts for inclusion in the government's Budget and Three Year Fiscal Plan, the annual estimates and other associated budget and fiscal documents.

Fiscal Planning, Budgeting & Management Expert, with a strong background in finance/economics & urban management

Definition;- fiscal planning is a kind of financial planning that runs according to the fiscal fianacial year. FINANCIAL PLANNING IN HOSPITAL Financial planning of the hospital should lay down policies in respect of The amount of capital required at each stage The sources in general and particular to be used to raise the required capital The mix of different sources in the total capital SOURCES OF FINANCE Once the quantum of finance is determined the next step is to plan and procure funds from various sources at the minimum rate possible. The available source is depend on the form of the hospital organiza SOURCES OF FINANCE Equity share capital;Owners capital is relatively easy to come by it is permanent in nature and remains with the company as long as it survives. An owners investiment shows their commitment to the project and their belief in the future profitability of operations. This capital may be raised through public issues. The quantum of minimum capital to be contributed in this form is not left choice. Retention of earnings;- for an existing organization the profits made will be an internal source of finance, and it is a cheaper option compared to the public issue. This source will be of great use during the expansion period. but the size of the profit may be small. Preference share capital;- this source of capital is almost extinct. It is advantageous neithr to the investor nor to the company. It is an instrument with the characteristics of a debenture and also that of an equity share. Debt capital;- it is long term source, but rarely a permanent one. Iit is called loan capital or debt. The lenders are promised a fixed rate of return on their funds, irrespective of the profits or losses made by the hospital.but in good times it more than offsets the risk of having this capital .

in the case of liquidation these get priority in terms of claims against the property of the company. Debentures and bonds;- this source of finance is the most popular and commonly used by corporate India, and well known and understood by the investing community. FINANCIAL OBJECTIVES In fianacial planning process the formost task is to define the financial objectives -provide financial resource for all essential services and then for other desirable activities -maintain the service charges within the reach of the people served by your hospital , including free and concessional care for the poor and needy - improve employee satisfaction by increasing benefits such as salaries , provident fund, gratuity , pension, housing, training, loans . IMPLEMEMENTATION OF THE FINANCIAL PLAN Many persons play important roles in an effective planning system -administrator - assumes responsibility for implementing the plans and policies approved by the governing board/ government/ higher authority. -meets with the heads of departments and others concerned to discuss the plans , policies and strategies. -appoints budget committee or designates a budget officer -assumes responsibility for the development , applying corrections needed control and execution of the plan within a time frame. Finance officer(finance controller or treasurer) -provides information about past experience and historical trend. -translates the effect of change in hospital activities- addition or modification of facilities and services. -provides data on environment population changes in the hospitals services area, price trend, changes in regulations such as taxes. -translates the effect of changes in policy, pay scales allowances etc. -provide information about the financial performance variances.

-advises on investiments and endowments. -co ordinates annual budget. The target cost of capital for the hospital Appropriation of profit during the operating period The policies relating to the grant of credit and collection of receivables. FACTORS AFFECTING HOSPITAL EXPENDITURE Size of the hospital;- there is an optimum size of each type of hospital and the area it serves. As the size of the hospital increases the range and comprehensiveness of services increase resulting usually in a higher cost per patient day. Volume of activity;- higher the patient turnover higher the number of staff required nad greater the total number of procedures carried out. this leads to higher operating costs. Competition;- competition between hospital usually does not lower charges to the patient. It often results in higher costs but more facilities and conveniences are provided by the more competitive hospitals. -service intensity;- specialization leads to higher cost per patient day. High technology care warrants sophisticated, costly equipment, expensive procedures, greater use of consumables and supplies and more skilled staff. STEPS AND PALN;-

Conclusion;- financial planning is important for the smoothful functioning of all. Bibliography;C M Francis, et al. ,Hospital administration.3rd edition, Jay pee Publishers New Delhi. D C Joshi and Mamtha Joshi., Hospital Administration, Jay pee , New Delhi.