A local government might adopt a one-year budget, but why might long-term budget forecasting be important for a local government?
The best practice that the Government must adopt is long term budget forecasting andd financial planning. This is a collaborative process that considers uture scenarios and helps governemnt to navigate through the challenges. Long term budget oreccating helps in projecting revenues and expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios, etc. This is a process of aligning financial capacity with long-term service objective. Long term planning provides insights into future financial capacity so that strategies can be developed to achieve long-term sustainability in light of the government's service objectives and financial challenges. It stimulates discussion and helps to build on future strategies.
A long term Budget forecasting must include the below elements:
1. A budget plan must at-least look at 5-10 years in the future. This way the government would be in a better position to predict what may be the development areas in the near future.
2. A long term budget must consider all the areas where growth is required and then the funds must be planned and applied appropriately.
3. The budget must be properly strategized and visualised so that it is clear to all the parties concerned, It has to be communicated effectively so that the plans laid therein are implemented smoothly.
4. The budget should have a plan and correctly analysed with all the revenue and expenses taken into consideration, so that the resources are aligned effectively and the policies and priorities are laid down.
A local government might adopt a one-year budget, but why might long-term budget forecasting be i...
1)In the absence of data history, what is the primary approach to forecasting? 2)Why are long term forecasts important and which level of management is most interested in long term forecasts? 3)Why are short term forecasts important and which level of management is most interested in short term forecasts? 4)Briefly define a micro forecast- 5)Briefly define a macro forecast- 6)Briefly define a point forecast- 7)Briefly define an interval forecast- 8)Briefly define a density forecast- 9)What is one of the chief...
During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows: U.S. government T-bills 3.40 % U.S. government long-term bonds 4.70 U.S. common stocks 6.20 During the year, the consumer price index, which measures the rate of inflation, went from 100 to 114 (1982 – 1984 = 100). Compute the rate of inflation during this year. Round your answer to one...
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Why might it be important to look at the effectiveness of government policy through the "claim and blame" perspective? If the government agencies and politicians use each other to shift blame away from themselves how effective can governments really be? How might this be resolved?
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Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6 percent and a standard deviation of 9.6 percent. What is the probability that your return on these bonds will be less than −13.2 percent in a given year? Use the NORMDIST function in Excel® to answer this question. Probability % What range of returns would you expect to see 95 percent of the time? Expected range of returns ...
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