State if you agree or disagree with this statement and why? Response should be more than a “book report”, and display proof of critical thinking.
In public budgeting the two approaches are appropriation and budget. Appropriations are simpler to prepare and understand. It consists of line items and then the cost is associated with every item involved in appropriation. An appropriation must meet the statutory requirements of Illinois. The preparation of Appropriation requires minimum number of resources. On the other hand a Budget covers each and every activity along with cost associated to every activity. It is more in detail, required a lot of resources in preparation and provides more transparency as compared to Appropriation. Budget and appropriation represent the maximum amount of expenditures that entities are authorized to spend.
Balance Budget: it’s a situation in financial plan or in budgeting practice where total revenues are equal or greater than total expenses. A budget can be considered balance or in equilibrium when a budget has no budget deficit, but possibly have a budget surplus. It’s kind of demand equal capacity assignment that needs to be in equilibrium. The revenue from each budget can help a company to have more fund balance that can help the authorities to use it later in term of lack in budget for future.