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Describe what happens to the budget at the approval stage of the budget cycle, including the
players involved, the interaction that take place and the final outcome of this stage.
Solution
Budget and Budget cycles
We know that Budget means that it is comprehensive and coordinated plan, it is expressed in
financial terms, for the resources and operation of the enterprices for some specified periode in
the future.
In a budget there are four phases. these are:
1.Preparation
2.Approval
3.Execution
4. Evaluation
The four budget cycle is explained in brief.
1. Preparing the budget
This is the first stage of thebudget cycle. This is grass root level of budgetting. At the time of
preparation of budget we can select what is needed and what will be approved and how much
will be the cost.
2. Approval of budget
this is the second phase of the business cycle. Under this is a legislative driven stage. to this the
budget is submit the legislative body or the council. This stage the legislative body can be check
the coverage and level of documentation. this stage is a yes or no game.once approved by the
legislative body, executive usually signs the budget before it becomes law. when they are
disapproved then budget again send to the legislative council.
3.Executing the budget
This is the third phase of the budget cycles.once budget is approved by the legislative council the
executive will be crossly check the budget and look at the money will be wastly spent.
4.Evaluating budget
On this stage the budget will be evaluated and they can chek spending pattern and needed extra
money.

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Describe what happens to the budget at the approval stage of the bud.pdf

  • 1. Describe what happens to the budget at the approval stage of the budget cycle, including the players involved, the interaction that take place and the final outcome of this stage. Solution Budget and Budget cycles We know that Budget means that it is comprehensive and coordinated plan, it is expressed in financial terms, for the resources and operation of the enterprices for some specified periode in the future. In a budget there are four phases. these are: 1.Preparation 2.Approval 3.Execution 4. Evaluation The four budget cycle is explained in brief. 1. Preparing the budget This is the first stage of thebudget cycle. This is grass root level of budgetting. At the time of preparation of budget we can select what is needed and what will be approved and how much will be the cost. 2. Approval of budget this is the second phase of the business cycle. Under this is a legislative driven stage. to this the budget is submit the legislative body or the council. This stage the legislative body can be check the coverage and level of documentation. this stage is a yes or no game.once approved by the legislative body, executive usually signs the budget before it becomes law. when they are disapproved then budget again send to the legislative council. 3.Executing the budget This is the third phase of the budget cycles.once budget is approved by the legislative council the executive will be crossly check the budget and look at the money will be wastly spent. 4.Evaluating budget On this stage the budget will be evaluated and they can chek spending pattern and needed extra money.