State and explain the types of budgets

      

State and explain the types of budgets.

  

Answers


Judy
a) Legislative against executive budget: Legislative budget is prepared and adopted by MPs directly or through its committees. An executive budget is prepared by the executive branch of government, passed and adopted by legislators.
b) Multiple against unified budget: Multiple budgets is the one prepared and presented into parts so as to make it possible to evaluate specialized function of the government. Unified budget is presented as a whole. Its total effect can therefore be clearly seen hence it is more relevant.
c) Conventional (Administrative) against cash budget: It is where revenue and expenditure are shown on accrual basis and the flows of funds not belonging to government are excluded. Cash budget shows both revenue and expenditure are shown on actual basis. It also includes funds not owned by the government. It is therefore bigger than administrative budget and better representation of reality.
d) Revenue against capital budget: Revenue budget covers those items which are recurrent in nature. It is financed by taxes, fees. Prices and other income of revenue nature. Capital budget covers those items which are in nature of acquiring and disposal of capital items. It is mostly financed by public revenue though borrowing is resorted to in case revenue is deficient.

Judiesiz answered the question on July 7, 2018 at 00:32


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