How to Effectively Use Six Budgeting Methods of Government Procurement

This paper analyzes several commonly used budget preparation methods and their advantages and disadvantages as follows: 1. Fixed budget method, also known as static budget, refers to the method of budgeting based on a normal and objective business level. This method is suitable for purchasing expenditure items that remain relatively stable within a certain range, including: first, the amount of expenditure has not changed much, such as automobile insurance items; Second, it is difficult to estimate the amount of expenditure, which is generally calculated according to the quota standards approved by the financial department, such as car maintenance fees and conference fees; Third, before the start of the budget year, the procurement expenditure items identified in the relevant plans, such as purchasing office facilities such as computers and air conditioners or vehicles, have been approved and confirmed. Its advantages are simple and intuitive, but its disadvantages are mechanical rigidity and poor comparability, which is not conducive to the correct control, assessment and evaluation of the implementation of government procurement budget. Second, the flexible budget method, also known as variable budget, refers to the expense budget that can adapt to various business levels based on various business levels that may occur during the budget period, and determine the corresponding expenses respectively. It is precisely because this kind of budget can reflect the expenditure control number under each business level with the change of business volume, and it has certain flexibility, so it is called "flexible budget". This method is suitable for all kinds of projects that change with the change of business volume, such as the goods procurement project of schools. Due to the great changes in the enrollment scale of students, the number of tables, stools and beds that need to be increased, the protection and maintenance of teaching buildings or other procurement items can be calculated according to the planned enrollment and the number of students in the budget year. Its advantages are overcoming the shortcomings of traditional budgeting methods, expanding the scope of application of the budget, making the control, assessment and evaluation of budget implementation based on comparability, and avoiding frequent revision of the budget due to changes in business volume. 3. Incremental budget method Incremental budget method refers to a budget method that increases or decreases the budget amount of related projects accordingly based on the actual implementation of the budget in the previous year, taking into account the changes of various factors during the budget period, so as to determine the income and expenditure in a certain period in the future. If a certain proportion is increased on the basis of the actual number of the base period, it is called "incremental budget method"; On the other hand, if a certain proportion is reduced on the basis of the actual number of the base period, it is called "budget reduction method". This method is mainly applicable to the expenditure items that should be increased correspondingly due to the realization of some procurement items during the planning period. For example, the budget unit plans to purchase or auction cars in the budget year, which will lead to the increase or decrease of the expenditure budget of related automobile maintenance fees, insurance premiums and other procurement projects. Its advantages are simple budget method and easy operation. The disadvantage is that based on the actual implementation results of the previous budget, it is inevitably affected by the fait accompli, which makes some unreasonable factors in the budget easy to be followed for a long time, so it has certain limitations. At the same time, it is also easy for grass-roots budget units to develop the thinking habit of "waiting, relying on and wanting" in the use of funds, and to develop egalitarianism and simplification in budget allocation, which is not conducive to mobilizing the enthusiasm of various departments to increase revenue and reduce expenditure. Four. Zero-based Budget Method (zero-based budget method), referred to as "zero-based planned budget method" for short, refers to fundamentally evaluating the importance of various business activities for each budget item in the budget period, completely reconsidering the necessity and level of each budget expenditure according to the business objectives to be achieved in the budget period, so as to determine the allocation order of existing resources and prepare a new budget. The preparation of zero-based budget can be roughly divided into the following three steps: (1) drawing up budget items and registering budget descriptions; (2) Make a "cost-benefit" analysis of each budget item; (3) Allocating funds and implementing budgets. These Measures shall apply to all kinds of government procurement expenditure items. Its advantage is to re-determine the expenditure demand of goods, services and engineering projects according to the influencing factors and priorities of the budget year, and to demonstrate and explain the project basis, investment, technical requirements and benefits in detail. According to the long-term plan of national economy and career development, the projects that need urgent treatment are ranked first to ensure the implementation of key expenditure projects. It is conducive to making full use of limited financial funds, rationally allocating resources, giving play to the initiative and enthusiasm of managers in various departments, conducting cost-benefit analysis in various departments, and effectively improving the efficiency of the use of government procurement funds. Its disadvantage is that the budget workload is large, and it is necessary to analyze the historical data of budget units, the use of existing funds and the input-output analysis, requiring all units to have solid basic work and sound rules and regulations. V. Regular Budget Law The regular budget law refers to a budget preparation method that takes the fiscal year as the budget period when preparing the budget. This budget method is mainly suitable for some recurrent government procurement expenditure items in service category, such as conference fees, transportation fees, printing fees and so on. Its advantage is that it can match the budget period with the fiscal year, which is convenient for assessing and evaluating the implementation results of the budget. Its disadvantage is that the budget is generally prepared in the first two or three months of a year, with a long span, and the situation in the planning period is not clear enough, so it can only be estimated in general, which has certain blindness and lag. At the same time, it is easy for managers to only consider the completion of the current plan and lack long-term plans in implementation. Rolling budget method of intransitive verbs, also known as continuous budget or perpetual budget, refers to the adjustment and specific preparation of the next budget according to the completion of the previous budget according to the principle of "near details and far details", so that the budget preparation period will be continuously rolled forward one by one, so that the budget will always maintain a certain time range. To put it simply, it is a budgeting method that adjusts and compiles the next budget according to the completion of the previous budget indicators and keeps rolling forward the budget period. The rolling budget can be prepared by long-term planning and short-term arrangement, that is, when preparing the budget, it can be divided into quarters according to the year, and the first quarter can be divided into months to prepare a detailed budget for each month. The budgets of the other three quarters can be a little thicker, and only the total amount of each quarter can be listed. Before the end of the first quarter, the budget for the second quarter can be subdivided by month, and the total amount of each quarter can only be listed in the third, fourth and first quarters of the next year, and so on, so that the budget can be continuously scrolled down. This method is suitable for large-scale and long-term projects or large-scale equipment procurement projects. Its advantage is that it can grasp the short-term planning objectives and long-term strategic layout from a dynamic perspective, making the budget more transparent. Since the time is not limited by the calendar year, the recent budget can be adjusted and revised in time according to the implementation of the previous budget, which is helpful to ensure the continuity and integrity of the project expenditure and can give full play to the guiding and controlling role of the budget.