COLLEGE OF NURSING
INSTITUTE OF LIVER AND BILIARY SCIENCE
Assignment on
DEVELOP BUDGET PROPOSAL
SUBMITTED TO - SUBMITTED BY
Dr Mini George Ms. Himani Kala
Principal M.SC(N) 2nd Yr.
CON, ILBS CON, ILBS
INTRODUCTION
Budgeting is a fundamental aspect of financial management that plays a critical role in the planning and
execution of any project or business endeavor. It involves the systematic allocation of financial resources to
achieve specific goals and objectives while ensuring the efficient use of those resources. A well-constructed
budget serves as a financial roadmap, guiding decision-making processes, monitoring financial performance,
and facilitating strategic planning.
The importance of budgeting cannot be overstated. It provides a structured approach to forecasting
revenue, estimating expenses, and managing cash flow. By establishing clear financial boundaries and
expectations, budgeting helps organizations and individuals avoid overspending and ensures that sufficient
funds are available for essential activities. Moreover, a budget acts as a benchmark against which actual
financial performance can be measured, enabling timely identification and correction of variances.
DEFINITION
A budget is a financial statement prepared before a specified period to attain a specified goal. According to
Terry, a budget is an estimate of future needs arranged on an orderly basis, covering all the activities of an
organization for a definite period. A budget is a plan of operations for some specific coming period followed
by a system of record that will serve as a check on the program. It generally represents expected revenue as
compared with anticipated expenses.
Budget is a part of the budgeting process developed initially and then continually monitored over
time. It is a monetary declaration of action for a specific period. It is a plan of operations for a particular
future period, which has a record that serves as a check upon the plan. It generally represents expected
revenue against anticipated expenses.
PURPOSE OF BUDGET
• Budget is a tool of financial control exercised at various stages of financial management.
• Budget is an instrument of the organization as a policy Budget or fiscal policy. It is a device to put
plans and strategies into action.
• The budget acts as a useful tool for administration and is the principles of administration, i.e.
planning, coordination, control, evaluation, reporting, and review applications, in a budgetary
system.
• A budget is also a tool of accountability as it has valuable information for various activities.
• Budget is a forecast of income and expenditure in business/finance plan.
• It is a tool for decision-making. Budget provides a financial framework for the decision-making
process.
• The budget is a means to monitor business performance. Once a budget is in operation, it measures
the actual financial transactions against the forecast.
BUDGETING PROCESS
The budgeting process typically involves several key steps, each aimed at systematically planning,
executing, and monitoring financial activities to achieve organizational goals. Here are the essential steps in
the budgeting process:
1. Establishing Objectives and Guidelines
• Identify Goals: Define the overall objectives and financial goals that the budget aims to support.
These could include revenue targets, cost containment measures, investment in growth areas, etc.
• Set Guidelines: Establish guidelines and principles that will govern the budgeting process. This
includes determining the timeframe for the budget (e.g., annual, quarterly), the level of detail
required, and the roles and responsibilities of those involved.
2. Gathering Information and Data
• Historical Data: Collect and analyze historical financial data, including past revenues, expenses,
and other relevant financial metrics. This serves as a baseline for making informed projections.
• Market and Economic Trends: Research and incorporate external factors such as market trends,
economic conditions, regulatory changes, and industry benchmarks that could impact the budget.
3. Revenue Forecasting
• Sales Projections: Estimate future revenues based on sales forecasts, pricing strategies, market
demand, and customer behavior analysis.
• Other Income Sources: Identify and project income from sources such as investments, grants,
royalties, or other non-operational revenues.
4. Expense Planning
• Fixed and Variable Costs: Categorize expenses into fixed (e.g., rent, salaries) and variable (e.g.,
raw materials, utilities) costs. Estimate these expenses based on historical data, planned activities,
and anticipated changes.
• Budget for Capital Expenditures: Include costs for major investments in assets like equipment,
facilities, or technology upgrades, considering their impact on cash flow and financial sustainability.
5. Developing the Budget
• Allocate Resources: Allocate resources (money, personnel, time) to specific activities, departments,
or projects based on their prioritization and strategic importance.
• Budget Adjustments: Fine-tune the budget to align with strategic goals and financial constraints.
Balance expenditures with expected revenues to ensure financial stability and feasibility.
6. Review and Approval
• Internal Review: Present the draft budget to relevant stakeholders, such as department heads,
executives, or the finance team, for feedback and adjustments.
• Approval Process: Obtain approval from management or governing bodies. This may involve
revisions based on feedback, negotiations to address conflicting priorities, and ensuring alignment
with organizational strategies.
7. Implementation
• Execution: Implement the budget by allocating funds as planned, monitoring spending against
budgeted amounts, and ensuring compliance with financial policies and guidelines.
• Communication: Clearly communicate the budget allocations and financial expectations to all
relevant stakeholders to foster accountability and transparency.
8. Monitoring and Control
• Regular Monitoring: Continuously monitor actual financial performance against the budget.
Identify any deviations or variances early and analyze their causes.
• Adjustments: Take corrective actions as necessary, such as reallocating resources, adjusting
spending patterns, or revising forecasts based on changing circumstances.
9. Reporting and Analysis
• Financial Reports: Prepare regular financial reports that compare actual performance with budgeted
figures. Highlight key variances, trends, and insights to facilitate informed decision-making.
• Analysis: Conduct detailed analysis to understand the reasons behind variances, assess the
effectiveness of budgeting strategies, and identify opportunities for improvement in future budget
cycles.
10. Review and Continuous Improvement
• Post-Implementation Review: Evaluate the effectiveness of the budgeting process, including its
accuracy, relevance, and impact on organizational goals.
• Feedback Loop: Incorporate lessons learned into future budget cycles. Continuously improve
budgeting techniques, processes, and methodologies to adapt to changing business environments and
optimize financial outcomes.
By following these steps, organizations can develop comprehensive budgets that support strategic
objectives, enhance financial performance, and foster sustainable growth.
Budget Proposal: Fresher Party for MSc Nursing Students
1. Establishing Objectives and Guidelines
Objective: To organize a memorable fresher party for MSc Nursing students, fostering camaraderie and a
sense of community among incoming students and faculty.
Guidelines:
• Budget period: One-time event budget for the fresher party.
• Ensure inclusivity and adherence to university policies.
• Create an enjoyable experience within allocated funds.
2. Gathering Information and Data
Historical Data: Review budgets from previous student events for reference.
Market and Economic Trends: Consider current costs of venue rental, catering, entertainment, and
decorations in the local area.
3. Revenue Forecasting
• Sources of Revenue: Fundraising through student contributions and sponsorship from local
businesses or alumni.
• Income Projections: Estimate contributions based on expected attendance and participation.
4. Expense Planning
• Fixed Costs:
➢ Venue Rental: 3000 Rupee only
➢ Decorations: 500 Rupee only
➢ Catering: 3000 rupees only (including food and beverages for 100 attendees)
➢ Entertainment: 2000 (DJ or live band)
➢ Winning prize: 500 (Ms/Mr fresher sash,crown )
➢ Photography: 1500 rupees only
• Variable Costs:
o Additional Decorations: 300 rupees only (if needed)
o Miscellaneous: 500 rupees only (for unexpected expenses)
5. Developing the Budget
➢ Total Estimated Expenses: 11,300 rupees only
6. Review and Approval
• Internal Review: Present budget proposal to the student council or faculty advisor for feedback and
approval.
• Approval Process: Obtain final approval from relevant stakeholders.
7. Implementation
• Execution: Allocate funds according to the approved budget.
• Communication: Inform students and faculty about event details, including date, time, and venue.
8. Monitoring and Control
• Regular Monitoring: Track actual expenses throughout the planning and execution phases.
• Adjustments: Make adjustments as necessary to stay within budget limits.
9. Reporting and Analysis
• Financial Reports: Prepare a post-event financial report comparing actual expenses with budgeted
amounts.
• Analysis: Analyze variances and lessons learned to improve future event planning.
10. Review and Continuous Improvement
• Post-Event Review: Gather feedback from attendees and stakeholders to assess event success and
identify areas for improvement.
• Feedback Loop: Incorporate feedback into future event planning to enhance student experience and
engagement.
Budget Chart: Fresher Party for MSc Nursing Students
Category Estimated Cost
Venue Rental 3000
Decorations 500
Catering 3000
Entertainment 2000
Winning prize 500
Photography 1500
Additional Decorations (Variable) 300
Miscellaneous (Variable) 500
Total Estimated Expenses 11,300
SUMMARY
The budget proposal for organizing a fresher party for MSc Nursing students aims to create a memorable
event that fosters community spirit and engagement among incoming students and faculty. The proposal
outlines a structured financial plan, detailing estimated expenses across various categories including venue
rental, decorations, catering, entertainment, and miscellaneous costs. Revenue sources such as student
contributions and potential sponsorships are identified to support the budget. The budgeting process involves
thorough planning, gathering of historical data, revenue forecasting, expense planning, and continuous
monitoring to ensure responsible financial management and adherence to budgetary constraints.
CONCLUSION
In conclusion, the budget proposal provides a comprehensive framework for planning and executing a
successful fresher party within the allocated budget of $2,450. By following the steps outlined in the
budgeting process, including careful estimation of expenses, consideration of revenue sources, and proactive
monitoring, the organizing committee can ensure a memorable and enjoyable experience for all attendees.
Continuous feedback and improvement based on post-event analysis will further enhance future event
planning efforts, contributing to the overall satisfaction and engagement of MSc Nursing students.
BIBLIOGRAPHY
Vati, J. (Ed.). (Year). Nursing Management and Administration (2nd ed.). Jaypee Publications. p. 565.
