Finance - Budgeting Paper Essay Example | Topics and Well Written Essays - 1500 words

Finance - Budgeting Paper - Essay Example Thus, an external way is proposed to finance the budget deficit financed by collection of taxes. The budget deficit is expected to accrue from the demand of residents of Kelsey state for more security operations around the City of Kelsey to curb the rising insecurity levels in recent times (Premchad 1989). Also, the recent federal government policy to cut down state government financial allocations will reduce the amount of funds needed to satisfy all the state priorities. The money sourced from the new source is to be fully allocated to the security department within the city council of Kelsey. This will be essential for more local policing surveillance around the city and its environs. Also, in order to fill the deficit created, the budget committee has proposed a number of fund reductions in some state operations in the coming year. The fund that would have being allocated to the proposed departments to face fund reduction, is under the proposal of the committee to be channeled to wards hiring more police officers, increased surveillance and building of new prisons in the coming fiscal year (Adams and Williams 2010). 2.0 June 2012/ June 2013 Budget Plan; The budgetary plan for this fiscal year as illustrated below is an outline of the general framework of budget goals and objectives that needs to be met on state operations, servicing debts, capital expenditure, state reserves and financial reporting (Lee, Joyce and Wayne 2008). The budget plan proposal for this fiscal year provides standards that can allow current budget performance to be measured against in the future budget proposals that may face similar or unique problems the city of Kelsey is currently facing. The city is facing a security threat from a rate of crime it has never faced before. The rate of crime has been noted as a big threat towards the social, political and economical development to the resident of Kelsey city. This has called for an immediate action against the crimes to prevent the ci ty from the posing disaster. I, as the budget manager of Kelsey state fiscal budget together with the budget committee have come up with a budget proposal that tries to reflect the cure of the problem (Riley and Colby 1991). The annual budget, under the fiscal policy of Kelsey state as per the state statue is adopted by November and completed in June. The budget is required under the state fiscal policy also, to be debated for six months prior to its adoption. Under the current environment of an escalating crime level, I have proposed that the fiscal cycle to be amended in order for the security concerned departments to access funds to curb the crimes. The budget proposal should be debated in the month of May by the mayor and the council and adopted in June. This has been noted that it will be against the fiscal policy of Kelsey state, but it will be necessary in the fight against the crime level before it hits uncontrollable level. 2.1 Operating budget plan; The current revenues wi ll not be enough to finance current operating expenditures. This is as a result of the proposal to increase budget allocation towards policing operations. The estimated general fund for the state operating revenue is expected to be $ 40 millions and the expenditures under operations are expected to be $ 50 millions. The ratio of the two estimates stands at 1: 1.25 which means the estimated