Question

Explain the role of budgetary management in economic development

Answer 1

What is a Role of budgetary management in development economy?

A budget can be useful in setting standards of performance, effectiveness and efficiency for the development of the economy in a country. Budget

management is an essential tool for the good management of funds. It allows to identify the charges and projected incomes of the company, according to the defined objectives and to compare them later with the reality.

Budget helps to aid the planning of actual operations by considering how the conditions might change and what steps should be taken. Budgetary management is important in the economic development for the following reasons: · To control resources · To evaluate the performance · To provide visibility · For accountability · To stay on track with the plan