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The objective of the study is to understand the schema for preparing budget for the organization and effectiveness of budgeting policies of the organization. To find out the financial position of NDMC. To find out variations between the Budget estimate and actual performance and reasons. To study the Growth pattern in last ten years.
RESEARCH METHODOLOGY
INTRODUCTION
Delhi, the capital established in 1911. The first municipality (RAISINA MUNICIPAL COMMITTEE) in February 1916. Upgraded to 2nd class municipal act in April, 1925. In February 1927 the committee was renamed as New Delhi Municipal Committee . committee was converted into a first class municipality in the year 1932. Under the NDMC act 1994, it has become; New Delhi Municipal Council with effect from 25.05.1994.
RECEIPTS
Total receipts in year 1999-2000 was Rs. 611.70 crore. Total receipts in year 2008-2009 was Rs. 1413.41 crore.
1800 1600 1400 1200 1000 800
Budgeted Actual
EXPENDITURES
Total expenditures in year 1999-2000 was Rs. 583.51 crore. Total expenditures in year 2008-2009 was Rs. 1007.80 crore.
1600 1400 1200 1000 Budgeted 800 600 400 200 0 2005-06 2006-07 2007-08 2008-09 2009-10
Actual
F INDINGS
The budgeting policies of NDMC were very effective. The procedure of information collection and fund allocation were very efficient. Financial position and credit worthiness of organization was very good. Differences between budget estimates and actual performance were not enough, there was differences was high due to some unexpected reasons. Growth of receipts of NDMC fine in last ten years. CAGR for last ten year (99-00 to 08-09) was 8.7 %.
C ONT
Change in the accounting system brings more transparency in financial statements. The actual expenditure has almost always been less than the budget and revised estimates. Part of tax revenue was very low as compare to non tax revenue, Tax revenue in the year 2008-2009 was Rs. 201.91 crore and non tax revenue was Rs. 795.02 crore. This was because of decrease of assign tax revenue by state and central government Revenue from electricity from 40.94% part of total income, it was Rs. 569.27 crore in year 2008-2009.
C ONCLUSION
NDMC has a very strong position to fund its projects for infrastructure development and public expenditure in its area. Debt free municipality since 2005. NDMC not dependent on center and state Government for financial help for public expenditures. With the pressure of high expenditures, receipts were increase with the CAGR of 8.76% in the period of 1999-00 to 2008-2009. Successfully maintain the changes in the structure of receipts and expenditures.
S UGGESTIONS
Implement better tax collection method. Invest surplus in other securities also not only in bank deposits. Focus on expenditures more not only on increasing receipts. The CAGR of period of 1999-00 to 2008-09 for receipts 8.76% and for expenditure it was 5.61%. Implement effective management information system to keep track of all departments performance. As revenue analysis shows that it increase year by year except few years, NDMC has to utilize it by providing electricity, water and other services at lower rate. Implement an effective system so that information regarding budget preparation can be collected effectively. Develop research and development projects for future growth.