Page 116 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 6: Library Finance

10. …………………… presupposes that the authorities provide adequate finances to the library Notes
out of their regular budget, and that a particular minimum limit is fixed.

6.4 Library Expenditure Planning

Expenditure is the second important aspect of financial management. Library expenditure
occupies the same place in the study of financial management as consumption does in the daily
life of an individual. As consumption is the end of all economic activities, so also library
expenditure is the end of all the financial activities of a library.

6.4.1 Importance of Library Expenditure

Just as you spend money on your books and studies, so do libraries spend money on books and
periodicals, readers’ services, references and bibliographical services, documentation and
information services, etc. The objective behind all these is the supply of the right document to
the right reader at the right time. The library expenditure is generally undertaken to satisfy the
intellectual requirements of the readers and provide those documents which the readers in their
individual capacity cannot and do not want to purchase. Besides, no individual can purchase all
the literature which comes out of the printing presses of different countries, on different subjects,
in various languages, and in diverse forms. The only agency which can acquire process and
make available all this literature to readers is the library. All this means spending money and
more money.
6.4.2 Nature of Library Expenditure

There are three major characteristics in the nature of library expenditure:
(i) Library is a spending institution: Libraries, unlike many government departments, are
not revenue-fetching agencies. They are spending institutions, and they participate in
nation-building activities. The money spent by the library is a long-term investment in
human capital.
(ii) Library is a growing organism: The library trinity of documents, readers and staff always
grows. It implies that the requirements of the library will always go on increasing day by
day. All this means more expenditure.

(iii) Library expenditure is recurring: Libraries are not only spending and growing institutions,
they are also permanent bodies. In an era of educational advancement, library services
will have to maintain a continuous rhythm to cope with the academic requirements of the
clientele. This means that library expenditure is recurring in nature.

6.4.3 Principles of Library Expenditure

Library expenditure consists of the following principles:
(i) Principle of maximum aggregate benefit: The library exists for the service of different
types of readers. Therefore as a librarian, you should be neutral, and should see that no
particular individual is specially benefited by your expenditure policy. You should plan
your library expenditure in such a manner that the majority of readers derive maximum
benefit of library use.
(ii) Principle of advance planning: Library expenditure should be planned in advance and a
proper estimate should be made for different items so that adequate and balanced revenue
may be allotted to different heads. Orders should be placed in advance so that the needed
materials are acquired in time. The librarian should avoid last minute purchases.

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