MODULE 7: FINANCIAL ASPECTS OF EDUCATIONAL PLANNING
BUDGETNG: its IMPLICATIONS TO EDUCATIONAL PLANNING A national budget indicates, in terms of manpower, money, machines and materials, the country’s total resources to be utilized for various activities during a specified period. It is scrutinized by the country’s legislature; it becomes a piece of legislation when the legislature approves its adoption. The annual budget of an educational institution is approved by the institution’s governing board. The approved budget becomes the legal authority by virtue of which executives, agency heads or administrators can initiate or carry out activities designed to achieve organizational objectives.
What is Budgeting?
Budgeting is the process of systematically relating expenditure to achieve planned goals and objectives. It follows five phases and has three major functions.
The phases of budgeting are as follows: Phase I – identification of programs/projects/activities to be accomplished during the budget period;
Phase II – identification of resources in terms of manpower, money, machines and materials;
Phase III – costing of resources, which is the most important activity in budgeting since the budget is fundamentally a financial statement;
Phase IV – presentation of the budget in accordance with guidelines periodically issued by the proper authority, e.g., the Department of Budget and Management in the case of the Philippines; and Phase V – obtaining the approval of the appropriate authority, this involves piloting of the budget through a series of budget hearings.
Here the budget is subjected to reviews and compromises and undergoes adjustments. In the context of educational planning, budgeting is the translation of an educational plan into the common denominator, viz., and money (in pesos in the case of the Philippines).
Budgeting