3. Limited role in determining
resource allocation.
Allowed only limited input
Nursing as Non Income
producing
service
Overview of fiscal planning in
nursing management
4. Nursing budgets generally
account for the greatest
share of the total expenses
in healthcare institutions,
participation in fiscal
planning has become a
fundamental and powerful
tool for nursing
Nursing budgets generally
account for the greatest
share of the total expenses
in healthcare institutions,
participation in fiscal
planning has become a
fundamental and powerful
tool for nursing
In 21st
century….
5. Features of fiscal planning…
Most direct
control or
influence
financial
elements
Receive regular
data reports
Reflects the philosophy,
goals, and objectives of
the organization
Accountable for
the financial
results of the
operating unit
Responsibility
accounting
Active
participation in
unit budgeting
6. Characteristics
Proactive
Flexible
Clearly stated in measurable terms
Short- and long-term planning
Involve as many people as feasible in the
budgetary process
Requires vision, creativity
Thorough knowledge of the political, social,
and economic forces that shape health care
8. Integrating Leadership Roles And
Management Functions In Fiscal
Planning
Understand fiscal terminology
Aware of budgetary responsibilities
Maintaining cost effective unit
sensitivity to the organization’s
economic, social, and legislative
climate is a high-level management
function
Skillful in the monitoring aspects of
budget control
12. Zero based budgeting
A method of budgeting in which all
expenses must be justified for each new
period. Zero-based budgeting starts from a
"zero base" and every function within an
organization is analyzed for its needs and
costs. Budgets are then built around what is
needed for the upcoming period, regardless
of whether the budget is higher or lower than
the previous one.
14. Disadvantages of
Zero based
budgeting
Difficult to
define
decision
units
Forced to
justify every
detail
Necessary to train
managers
Compressing
may remove
critically
important
details
Honesty of
the
managers
must be
reliable &
uniform
15. Implementation of Zero based
budgeting
The zero-based budgeting system puts the
burden of proof on the manager, and
demands that each manager justify the
entire budget in detail and prove why he or she
should spend the organization's money in the
manner proposed. A "decision package“
must be developed by each manager for every
project or activity, which includes an analysis
of cost, purpose, alternative courses of action,
measures of performance, consequences of not
performing the activity, and the benefits.
16. Each budget start
with an assumed value
of 0.
Each budgeted item is
started at last years
level, and next period’s
level is planned as an
increment to that level
Zero based budgeting Incremental budgeting
Vs
17. A combination of
zero-based
budgets with
rolling budgets or
some other form of
budgeting
Dysfunctional
behavior in
subordinates
Significant
levels of job
related tensions
Adverse effects
on peer and
subordinate –
superior
relationship
Behavioral impacts of
Zero
Based budgeting
18. Mid term appraisal
MTA — which is an exercise carried out
during the middle of a Plan period to
assess the direction in which the Plan
is moving and to take corrective action
wherever required — is slated to be
much more than a review of how much
money is going into various schemes
and projects .
19. Capital budget
Capital payments consist of capital
expenditure on acquisition of assets like
land, buildings, machinery, equipment, as
also investments in shares, etc., and loans
and advances granted by Central
Government to State and Union Territory
Governments, Government companies,
Corporations and other parties. Capital
Budget also incorporates transactions in the
Public Account.
20. Revenue budget
The revenue budget consists of
revenue receipts of the government
(revenues from tax and other sources)
and the expenditure met from these
revenues.
23. Operatin
g budget
Operatin
g budget
Employe
e salaries
Employe
e salaries
Utilities
cost
Utilities
cost
Travel &
training
expenses
Travel &
training
expenses
Telephon
e &
internet
services
Telephon
e &
internet
services
Marketin
g
communi
cation
Marketin
g
communi
cation
Outside
consultant
fees
Outside
consultant
fees
24. India union budget
• Revenue Budget: The revenue budget
primarily comprises Government revenue
receipts like tax and expenditure met from
the revenue. The tax revenues principally
constitute yields of taxes and other duties
imposed by the Government of India.
• Capital Budget: The capital budget primarily
comprises capital receipts and payments.
25. Revenue Deficit
Revenue deficit occurs when the actual
amount of expenditure and actual
amount of received revenue do not tally
with the anticipated expenditure and
revenue figures
26. Recommendations and Advice
by Experts
• precautionary measures to reduce
revenue deficit level not less than 50%
from the current level
• Recommends lowering the ratio of
revenue deficit to fiscal deficit below 50
percent.
