Page 130 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 7: Budgeting

Programmes are then grouped into a series of “decision packages” with their Notes
statement of purpose

Ranking of the “decision packages”
Cut-off point corresponds to the total budget allocation.
ZBB improves the plans and budgets of libraries and helps to develop good management teams.
It also helps to add follow on benefits over the years. Yet the serious problem of the enormous
time and efforts required together with other administrative problems and problems of
developing and ranking “decision packages” prevents its adoption in libraries.

Some observations: Some of these budgetary methods are of recent origin and present a more
readily understandable view of the budgetary requirements of activities and services, a more
objective justification for them and are better instruments for purposeful spending. In practice it
is necessary to understand the “politics” of the budget process within the parent organisation
and look for opportunity for personally participating in the final negotiations/ deliberations as
well as using personal informal contacts effectively.
In India, almost all libraries follow the conventional historical method of budgeting. It is only
in recent years that some attention is given to other, newer, methods. One aspect that needs
careful examination is that most library functions and services are of a continuing nature and
cannot be discontinued on any account without reference to the past. While it is necessary to
evaluate performance and effect improvements to ensure quality of service, discontinuity of
existing services would prove undesirable, particularly if conditions do not warrant. It is,
however, possible to make a more objective assessment of these methods of budgeting only if
Indian libraries start making their budgets by these newer methods and gain sufficient experience
in their operations.

Task Explain the features of Zero-Base Budgeting in five or six lines.

Self Assessment

Fill in the blanks:

4. The usual traditional method which, by taking into account past expenditure on each item,
prepares the current budget is called …………… budgeting.
5. The focus in ………………… budgeting method of budgeting is on the library’s activities
and the funds are to be earmarked for programmes or services that the library plans to
provide.

6. Performance budgeting method is similar to programme budgeting but the emphasis
shifts from programmes to …………………….

7.3 Budgetary Norms and Standards

For the purpose of financial planning and budgeting, standards and norms have been set/
proposed by professional experts, committees and bodies. They are quite useful in estimating
the budget, seeking and justifying funds as well as allocating the budget among various items of
expenditure.
Having got some idea of the methods of budgeting, let us now discuss the standards and norms
that form the basis of estimating be requirement of library funds required and also the

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