Introduction: Budget is defined as, an estimate, often itemized,of expected income and expense, or operatingresults, for a given period in the future.Thus alibrary budget is an estimate of expected incomeand expenditure of the library for the coming year.As budget is an estimate, therefore, it can bealtered, if the circumstances change. It needs to beflexible enough to meet the changing needs.However, any alteration should be carried out verycarefully. Budgeting in libraries is usually done onyearly basis. On the other hand an annual financialreport or statement tills us as to what was achievedas what could to be done last year.
Purpose: By means of a budget, a library is able tolimit its expenditure to income. In addition, abudget enables it to do spending in asystematic manner.
Importance: Budgeting is the primary means by whichformulated plan can be carried out. Budgeting isconsidered important from the administrativepoint of view as, it serves as an effectivemanagement tool. It gives all direction; Itcoordinates all administrative function byguaranteeing exchange of information onpolicies, programmers, and finances; it insuresautomatic, regular consideration and re-evaluation of long range plans. Budget-makingalso provides the occasion for periodic reviewand reassessment of the changing needs of thelibrary’s constituency and resources. Next
‘budget is the most important control deviceto measure programmers of a library andtheir effectiveness. It reflects the goals andobjectives of the library. It also defines theauthority of the librarian towardsachievement of those goals and objectives.Thus budget is crucial to the success of alibrary towards meeting the needs of itsusers.
Factors: Budget so affected by the following factors: Size of library in terms of collection, users,staff and scale of its operations, Location and its physical arrangement, Kinds of library services, Types of users served, Rising costs, and Period covered (usually it will be one year).
Line-item: This is the most common type of budget. Herethe expenditure so divided into broad categoriess such as: Books, periodicals and other reading materials, Equipment, Binding, Heating, lighting, water and telephone, Stationery, printing, supplies, Insurance, Miscellaneous
Lump sum: in this approach, a certain amount of moneyis allocated to the library.The library decidesas to how that amount is going to beallocated to different categories.This givesconsiderable freedom to a librarian toallocate funds.
Formula budget: here a predetermined standards re appliedfor allocation of money.The formula ismechanical and easy to prepare. No skills arenecessary to prepare and administer formulabudget.
Performance budgeting: It bases expenditures on the performance ofactivities and emphasizes efficiency ofoperations.To gives justification for anddescription of services to be achieved by theproposed programmed. describes in detail theresources (men, materials and money) requiredto accomplish the proposal and extent ofprogrammed to be achieved during the nextfiscal year. Here, there would be_need foraccumulation of quantitative data for a period oftime.Techniques of cost benefit analysis areemployed to measure performance andestablished norms. It requires expensive andcomplicated techniques.
Programmed budgeting: Here we are concerned with activities oforganization bat individual items orexpenditures are ignored.The amounts areallocated to programmers or services rendered.It does not require expensive cost measurementstudies implied in performance budget.
Programmed budgetPlanning programming budget system (PPBS)Zero-based budgeting (ZBB)
Planning programming budgetsystem (PPBS) Many complex organization including some libraries areusing PPBS or some kind of its modification form. PPBS is atechnique, which combination the best of theprogramming budget and performance budget. The important step in PPBS are: Identification the objectives of the library. Presenting alternative ways to achieve thoseobjectives___with cost benefit ratio presented for each. Identifying the result so that corrective action can be taken.PPBS enable a librarian to enumerate programmed as wellas assign costs to these. Above all it allow authorities tolook at programmers in proper perspective. As a result theywill be able to notices the effects of cutting or addingmoney to the budget.
Zero-based budgeting (ZBB) it was developed by peter phyor to achievegreater effective planning and fiscal control. “theterm zero base is derived from the first steps upto pricess___the development of a hierarchy offunction based on the assumption that the unitor agency is starting operations for the first time(point zero).”Thus, the focus of planning anddevelopment is on the purpose(s) of the unit andon the function(s) which it should perform sothat it meets the reasons for its existence.Basically, it is not concerned with whathappened previously but rather with what sorequired to be done in future.
Budget allocation University library According to Ranganathan, the annual recurringexpenditure of a university library should be as follows: Expenditure on reading materials 40% Staff salary 50% Other expenditure such as those on provident Fund contribution, binding, and others contingencies 10% College library Expenditure on reading materials 36% Staff salary 50% Binding 4% Others 10%
Public library: according to ranganathan, the annualrecurring expenditure on public librarysystem will be: Staff salary50% Cost of reading materials, binding, and otherexpenses 50%
Special library: Expenditure on reading materials35% Staff salary50% Equipment9% Other expenditure including binding,distribution of Documentation list etc.6%
ConclusionThe budgeting process is a continuous one. It involves manypersons at different levels in the library but it is the chieflibrarian, who is responsible for the budget estimate assubmitted for the consideration of higher authorities.Theform of presentation and method of approval of budget willbe deciding factors regarding the degree of power ofdecision-making given to the librarian regarding use offunds granted to the library. However, a librarian mustrealize the context in which he is supposed to work in theorganization. By studying various forms of budgeting, onewould be able to learn about their strengths andweaknesses.As a result one may choose the form moresuitable for the library at least for reporting the activities tothe parent body. One would be expected to fall in the line.
Reference1. Library administration and management professorkrishan Kumar department of library and information science university of DelhiDelhi2. Library administration and resources Krishnamurthy4378/4B, Ansari road, darya Ganj, new Delhi=1100023. Library information systems Author:ThomasR. kochtanek & Joseph R. Mathews 88 post road westWestport,CT 068814. Library management Robert D. Stueart & B.Moran7730 East Belleview Avenue, Suit A200 Greenwood village