Describe the Library Budget & Methods of Library Budget  

Library Budget preparation is a planned process in which the expenditure and income of the institution is accounting for a particular period of time.

A budget is a schematic document and a financial distribution that provides details of proposed income and spending usage for a fixed time (usually for one year).

It is a means of controlling income and expenditure, how much money is to be received, and how much is to be spent.

In fact, The library budget is an extremely important instrument of control, communication, coordination, evaluation, and motivation. The appropriate feature of the budget is also commonly applied in the library budget.

Budget Formation Methods 


Every library, however small it may be, is governed by a budget. Librarians and senior staff prepare the budget in most of the libraries.

The budget is sent to the higher authorities for approval and after scrutiny and review, it is approved.

There are some methods of creating a library budget which is traditionally practiced in the library and some newly developed methods are also used.


Library Budget
Library Budget | Methods of Library Finance & Budget | Library Management


Following are the methods of Library budget formation: -


1. Item-based or linear or increment based budget - It is generally the most the traditional method in which the current budget is prepared based on the past expenditure on each item.

Hence, it is also called a historical budget. In this, the budget is prepared by increasing the allocation of each item of expenditure by 5 or 10 percent each year. Assuming that all present is necessary and important. This budget item is divided into broad categories.

The advantage of this method of budgeting is that it is relatively easy to prepare, present, and understand.

2. Formula Budgeting - In this method, a formula based on financial norms and norms are accepted. This appears to be a detailed and dynamic method. Hence saves a lot of time. But it is not responsible for minor variations in each library and its consumers and services.

3. Program Budgeting - This method is a detailed method of item-based linear method. For what purpose is this money being spent? And how to plan money for each program? Answers questions This method has three stages, originally formulated in the Hoover Commission Report (1949). this is

A. Person's purpose statement
B. Thorough consideration of alternative methods and
C. Best logical selection based on effectiveness and efficiency.

This budgetary law is concerned with focusing the funds for the activities of the library and the programs and services to be provided under the library scheme.

4. Performance Budgeting - This budget is similar to the budget method program etc. but in it, the importance is shifted from program to execution. The expenditure is based on the performance of the activities. Management techniques such as cost-benefit-value analysis are used to measure performance and establish criteria.

5. Planning Program Budgeting System (P.P.B.S: Planning Programming Budgeting System) - This method of the library budget formulation was first proposed in 1961 by USDOD. Two basic elements of PPBS are budget formation and system analysis. Which is an extension of the program budget that incorporates system analysis and other cost-effective processes to provide PPBS alternative approaches to benefits that establish a rational basis for choosing an alternative program?

This method combines the superiority of both the budgeting program and the budgeting execution. The focus of this method is on planning. It begins with the establishment of the objective and ends with the representation of the services. The control side of measurement is also a side of PPBS.

There are large discrepancies in its practice and the lack of standards for the measurement of the program are difficulties in the implementation of PPBS. It also has other implementation-related problems.

(1) to pay attention to how to do what to do instead

(2) failing to provide an operating device

(3) Lack of a device structure to evaluate the effect

(4) To emphasize the continuous evaluation of existing programs, instead of focusing on increasing new programs.

(5) Calculations for costs to be based on planning decisions.

6. ZBB (zero-base budgeting) - This method, developed by Peter Phyrr in the early a decade of 1970, requires thorough knowledge of the institute, much time effort, and training.

This method emphasizes the need to justify the current program and each part of each year's program, unlike PPBS, and unlike historical budget formulation.

When an appropriate officer can assure that the program is appropriate and eligible for financial assistance.

This method does not give what happened in the past but emphasizes on the current activities. In other words, each year has to justify renewed financial demand.  

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