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Accounting for Managers

Notes

Caselet CMDA wants Budgetary Control over City Agencies

he Chennai Metropolitan Development Authority (CMDA) cannot take pro-active
measures with regard to the second Master Plan, unless it is empowered with
Tbudgetary control over sectorial agencies, said CMDA’s deputy planner S Chitra.
These agencies include housing board, slum clearance board, corporation and the transport
sector.

After her presentation on ‘Sustainable and inclusive development: a focus on second
Master Plan for Chennai Metropolitan Area 2026’, the CMDA official had to field a volley
of questions from the audience which was critical of the CMDA’s inability to translate
plans into action.
At the question-answer session of the seminar, ‘Utopia and the city’, organised by Goethe
Institut at IIT Madras on Friday, participants accused the CMDA of merely being a watchdog.
“The Master Plan is a macro-level plan, and we do not have the powers to implement
infrastructure development issues in the city. We should have budgetary control over
sectorial agencies to implement the same,” she added. Until 1974, the budgetary control
rested with CMDA, but changed after that, with powers vested with agencies such as
housing board, slum clearance board, corporation and the transport sector.

Denying charges that the second Master Plan was just a shell presented to the outside
world, with no information on what was being planned on the ‘inside’, the deputy planner
said the city was on the threshold of change. “We are struggling to find a suitable model
and CMDA has established a good network with all the entities involved in infrastructure
development plans in the city.” Pointing out that 11% of the state’s population lived in one
per cent of its area, Chitra said that by 2026, housing would be a major challenge in the
Chennai Metropolitan Area (CMA). “We are using GIS for evaluating land use system and
the results will be on our website in three months’ time,” she added. Traffic and
transportation would pose a challenge as well in 2026, with an estimated 2.70 lakh daily
commuters needing infrastructure backing, she added.

Source: timesofindia.indiatime.com

9.6 Summary

Budget is an estimate prepared for definite future period either in terms of financial or
non-financial terms.
Cost control contains two different processes one is the preparation of the budget and
another one is the control of the prepared budget.

The production budget is a statement of goods, how much should be produced.
The ultimate aim of the production budget is to find out the volume of production to be
made during the year based on the sale volume.

Sales Budget is an estimate of anticipation of sales in the near future prepared by the
responsible person for the sale of a product by considering the various factors of influence.
The expected increase or decrease in the sales volume should be incorporated at the time
of preparing the sales budget from the yester periods sale figures.

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