ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget is simply a spending plan that takes into account estimated current and future income and expenses for a specified future time period, usually a year. Having a budget keeps your spending in check and makes sure that your savings are on track for the future.

Detailed explanation-2: -Using your organization’s budget as a communication tool allows you to vocalize ideas and strategies to your employees, board, and potential funders (“stakeholders”) in a quantifiable way. It will also encourage you to articulate and quantify your goals to yourself (important, but maybe less obvious).

Detailed explanation-3: -Like it or not, budget is a powerful communications medium. As such, the communications team should play a role in the budgeting process. Organizations that choose to ignore communications until it’s too late risk doing irreparable reputational damage in the eyes of employees and external stakeholders.

Detailed explanation-4: -Provide context and show trends. Budget communication without context or financial trends information is ineffective. Use technology to engage, not bedazzle. Allow for questions. 08-Apr-2022