S.K.

SCHOOL OF BUSINESS MANANAGEMENT

Presentation on:-
“Government Budget”

Name: Nandani Thakkar

Subject: Managerial Economics

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 Introduction
In the Modern world every government aims at maximization
of the welfare of its country. It requires a number of
infrastructural economic and welfare activities. All these
activities requires huge expenditure to be incurred. This
requires appropriate planning and policy. Budget helps in
planning and framing policies.

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 Meaning of Budget
The term budget is derived from the french word “Budget”
which means a “leather bag” or “wallet”. It is statement of
the financial plan of the government

“A budget is a document containing a preliminary approved

plan of public revenues and expenditure.”

-RENE STOURM

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Components of
Budget:-

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 Components of Budget
(1) Sales Quantity:- Sales quantity variance measures the
change in standard profit or contribution arising from the
difference between actual and anticipated number of units
sold during a period.
(2) Collection of Cash:- Cash collection is a function of
accounts receivable. It is the recovery of cash from a
business or individual with which you have issued an
invoice. Unpaid invoices are considered outstanding.
Invoices are always issued with terms of payment.
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(3) Expenses:- Expenditure is an outflow of money ,
or any form of fortune in general, to another
person or group as payment for an item, service,
or other category of costs. For a tenant, rent is an
expense. For students or parents, tuition is an
expense.

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(4) Sales Revenue in Dollars:- Revenue is the entire
income a company generates from its core
operations before any expenses are subtracted
from the calculation. Sales are the proceeds a
company generates from selling goods or services
to its customers.

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Sources of Revenue:-
 Revenue receipts of government
are generally classified under two
heads:

(1) Tax Revenue

(2) Non-Tax Revenue

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(1) Tax Revenue:- Tax Revenue is the income that is
gain by governments through taxation. Taxation is a primary
sources of government revenue. Revenue may be extracted
from sources such as a individual public enterprises, trade,
royalties on natural resources and /or foreign aid.

(2) Non-Tax Revenue:- Non-Tax Revenue or Non-Tax

Receipts are government revenue not generated from taxes.
For example; Bond issue and profits of state-owned
companies.
 Conclusion

A good budget conclusion shows that the

inhabitants of that country are enjoying increase
prosperity and well being. The strong performance
and effort aim for the improvement productivity and
labor force participation.