What is a Budget Committee?
Budget committee is one which prepares the budget and is fully responsible for the implementation of budgets. Moreover, the budget committee also exercises control. Budget Officer is enough to co-ordinate the work of line managers to execute the budget in small business concern. In case of large size business concern, there is a need of budget committee. The Chief Executive of an organization, line managers and the budget officer are the members of budget committee.
Functions of Budget Committee
The functions of budget committee are briefly explained below:
1. The general policies and objectives of an organization are decided.
2. It extends assistance to line managers for forecasting by supplying historical data.
3. It receives and reviews the individual budget estimates and different departments/divisions.
4. It receives instructions from the chief executive and gives instructions to line managers.
5. It gives suggestions and modifications in budgets in accordance with organizational objectives.
6. It approves the revised budgets.
7. It receives and investigates accomplishments regarding practical implementation of budgets.
8. It identifies responsibilities for poor performance and recommend corrective actions if necessary.
9. It gives suggestions to improve efficiency and achieve budgetary goals.
10. It co-ordinates the budgetary control programme.