Budget, Budgeting and Budgetary Control

Budget, budgeting and budgetary control are managerial tools for controlling economic transactions and other resources within an organisation. Basically, these terms were used by a government or a governing body for a nation’s financial planning. Similarly, these concepts- were used by monarchs and rulers of different countries in past for their economic transactions and futuristic planning of their countries. After the World War I, the significance of budget, budgeting and budgetary control increased to a greater extent. Every profit-making and non-profit organization makes plans in advance regarding its financial activities for the financial year. Since ages till the present times economic activities of a nation or an organisation are controlled by budget, budgeting and budgetary control. As time passed, these concepts became more elaborate and precise. Even for assessing the non-monitory activities, these concepts were applied. In the era of Globalization, the economic activities of the world became faster and clearer. The domains of Accountancy and Costing demanded more precise ideas regarding budget, budgeting and budgetary control. With the advent of Industrialization and Commoditization, the importance of accounting and costing increased and so also of budget, budgeting and budgetary control in every organization. Even the non-profit organizations started considering seriously their budget, budgeting and budgetary control. These concepts, in the post-globalization era, have emerged with wider perspective. Scholars and managers in the arena of Accountancy and Costing are using these concepts to micro activities like activity based budgeting and performance based budgeting. Further, these concepts are applied to departments and activities individually and independently. The present paper attempts to capture the use and application of the concepts of budget, budgeting and budgetary control in the changing scenario of accountancy and costing.