Tuesday, March 06, 2012

Difficulties in preparation of a Budget


It is really difficult to prepare appropriate and accurate budget for the 3rd world country. And Bangladesh is not exception at all. The difficulties of preparation of a budget are as follows:

i.  Data/ information which are collected from different offices, departments, organizations etc. are not similar in nature; rather contradictory.
ii.  There is wide difference between exits of expenditure and income of country.
iii.  Revenue collection measures of the government are not effective.
iv.    It is difficult to determine the priority of the development programs of the country.
v.      Excessive expenditure of the country.
vi. Difficult of industrial failure, faulty and irregular supply of electricity which disrupts the production and services, damages or any destruction makes a serious problem to prepare an effective budget.
vii.  It is absolutely difficult to minimize the target fixed and progress achieved.
viii.  Uncertainty of foreign aid, grants, and loan are the crucial problem in preparing budget.
ix.    High rate of inflation, manipulates the training and development activities.

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