Subject: Finance and Accounting
Topic: PRESENTING THE BUDGET
Language: English (U.S.)
Pages: 2
Instructions
Discussion 1 From the first e-Activity, examine and evaluate the disparity of your state’s budget allocation for education and property tax to the various localities Based on your assessment, challenge or defend the equity of the system across the various localities Discussion 2 Recommend at least two strategies a budget analyst can apply to ensure that the budget is performing according to the established performance indicators. Justify your response. In a new and separate respond to the following: From the e-Activity on “Variance Analysis” propose at least two actions a budget analyst can take to avoid assumptions in budget items to avoid overlooking favorable or adverse line items in the budget. Action 1: Provide examples to justify your response. Action 2: Provide examples to justify your response.

Econ Budgeting

Discussion 1


From the first e-Activity, examine and evaluate the disparity of your state’s budget allocation for education and property tax to the various localities (The state of New York allocates its funds to the several departments based on the needs of those departments. The decision makers make decisions regarding allocation of the funds as per the requirements of the society (Krugman & Wells, 2006). The disparity of the state budget allocation stems from the fact that not all the localities have equal needs. Some localities have more needy people while others contribute more in taxes (Hubbard & Brien, 2008). The aim of the allocation is to ensure equity by compensating the dependent people as they  all have to be included in the decision making.)

 


In a new and separate respond to the following:

Based on your assessment, challenge or defend the equity of the system across the various localities.

(The state allocates the funds top different localities depending on the needs of those localities. Different localities have different people with different needs. The state applies equity to give priority to the localities that need the funds the most (Krugman & Wells, 2006). These localities have to be at their best as governed by their leaders. The equity aims at restoring equity to the people who need it the most. It aims at lifting up those who are low, to level the playing ground for all. It enhances competition by making every person a worthy competitor.)


 

Discussion 2

Recommend at least two strategies a budget analyst can apply to ensure that the budget is performing according to the established performance indicators. Justify your response.


Strategy 1: (Financial Analysis. The financial analysis of the budget takes into account the trends of the various budget items (Hubbard & Brien, 2008). The financial analysis pays attention to how the revenues and the expenses have changed over a given period. It takes cognizance of the fact that time changes everything, and the decision makers have to include these changes when making those crucial budgetary decisions.)


Strategy 2: (Economic-Benefit Analysis: The economic benefit analysis pays attention to the benefits passed onto to the members of the state. The state has several people, all who have diverse needs (Krugman & Wells, 2006). There are people living with disabilities, there are the elderly, there are children and adults. The state has to consider the diversity of the needs of its people. The budgetary allocation must be inclusive of all of these stakeholders to ensure that their needs are adequately met (Hubbard & Brien, 2008). In evaluating the performance of the budget and the planning process, the decision makers must include the cost of ignoring these stakeholders. The dependent people may not contribute to the state economically, but the state has to give back to them.)


In a new and separate respond to the following:

From the e-Activity on “Variance Analysis” propose at least two actions a budget analyst can take to avoid assumptions in budget items to avoid overlooking favorable or adverse line items in the budget.

Action 1: (The budget analyst must identify the costs and classify them into the several categories (Krugman & Wells, 2006). For instance, the financial controller must put a distinction between the fixed costs and the variable costs to make an analysis on the efficiency of these costs.)


Action 2: (The financial controller must separate the costs objectively.)


References

Hubbard, R., & Brien, A. (2008). Economics (2nd ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.

Krugman, P., & Wells, R. (2006). Economics. New York: Worth.