Essay on Budgeting : The Budgeting Baffle

1035 Words May 14th, 2015 null Page
The Budgeting Baffle Budgeting is a very important skill to have in today’s society. It allows people to organize spending plans to prevent bankruptcy. Budgeting is also used in government. Anywhere from local to federal government, people can see the effects of budgeting. Many times, budgets are cut or reduced from certain programs because the presiding government officials feel that the money should be diverted elsewhere. Because of a lack in budgeting skills, state officials remove money from the education fund. Without full benefits from the education fund, many school districts, colleges, and universities are forced to reduce their educational programs, staff, and services, which then leads to economic failure. Just like any business, state officials are expected to create a budget to plan out spending habits. The budget is to account for all sources of revenue, e.g., property taxes, and licensing services. Along with income, the budget should account for expenditures, e.g., road servicing, and educational funds. While the budget is supposed to account for spending over the year, many times it falls short due to unexpected situations. Instead of setting aside some money for emergency situations, state officials budget all of the money without thoughts of emergency situations. Along with a failure in accounting for emergencies, many states collect extra funds to store in bank accounts instead of using for intended purposes. In numerous states, governors…

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