Question

01. (a) Explain the term Participatory Budgeting. (b) Discuss any four usefulness of Participatory Budgeting. (c) Discuss three challenges of Participatory Budgeting, 02. (a) What is Composite Budgeting? (b) State and explain five importance of Composite Budgeting. (c) Discuss any five challenges of Composite Budgeting Q3. (a) Budget tracking is an exercise in futility Discuss. (b) How is budget tracking executed?

Answer 1

QUESTION 1-

MEANING OF PARTICIPATORY BUDGETING-

Participatory BUDGETING- is a form of budget preparation process in which workers who are at lower levels are also involved in decision making process.

In participatory BUDGETING-, the responsibilities are also shared with lower level managers to give them a sense of belongingness in the organization .

ADVANTAGES -

1) It enhances the morale of the employees when responsibilities are being shared with them.

2) Participatory budgeting helps in achievement of Organisational goals while helping to achieve individual goals.

3) Using participatory Budgeting, the upward transfer of information from lower level to higher levels becomes easy.

DISADVANTAGES-

1) This budgeting method requires lot of time starting from flow of direction from higher levels to lower levels then lower level will perform the task and after that the result will be transferred to the higher levels. The entire process is time consuming.

2) A selfish employee who keeps his own interest above the interest of organisation defeats the motive of participatory Budgeting.