What are the methods of local budget adjustments?

1. Additional recovery of the budget

On the basis of the total amount of the originally approved budget, the amount of budget income or expenditure shall be increased and the target of budget income or expenditure shall be reduced.

2. Use the reserve fee

Provision funds are funds set aside in the general budget at all levels for non-specific purposes and earmarked to meet the needs of certain contingencies.

3. Expenditure of funds

In order to ensure the completion of the work plan.

In the absence of the total amount of the original budget expenditure, the redistribution of budget funds due to the transfer in, out and change of use of funds between budget items.

4. Budget transfer

Due to budget unit affiliation.

to transfer their budget to the new recipient.

Conditions for budget adjustments.

When one of the following circumstances is seriously affected and the implementation of the budget is seriously affected, the budget adjustment can be applied for in accordance with the prescribed procedures:

First, the reform of the enterprise system, reorganization, merger, merger and acquisition;

Second, the board of directors adjusts the company's development strategy.

Reformulate the company's business plan and change the scope of business operations;

Third, major changes in the objective environment (such as market demand, industry development, competitors and national policies, etc.) require adjustment of relevant budget indicators;

Fourth, the company's internal conditions (institutions, departments, personnel) have undergone major changes;

Fifth, force majeure occurs.

events, such as natural disasters.

the occurrence of time, etc.;

Sixth, other matters that the board of directors or the budget management committee deem necessary to be adjusted.

Budget adjustment refers to the implementation of the budget, due to changes in the objective environment or organizational structure adjustment, personnel changes and other factors, so that the original budget loses objectivity, each responsibility center according to the budget management regulations to put forward the budget adjustment requirements, after the budget management agency review, the budget objectives are revised. The budget itself is a very serious matter, and no department may arbitrarily adjust the budget without the approval of the budget management body. Therefore, budget adjustment involves many issues such as budget adjustment, principles, time, methods, and processes

Ways in which the budget is adjusted1) Bottom-up budget adjustmentsWhen objective factors such as the external environment and internal conditions lead to major changes in the company's overall situation, an application for budget adjustment can be submitted after consultation between the budget management committee and the managers. The examination and approval procedure is as follows: the budget management committee and the managers put forward the intention of budget adjustment, and the budget department prepares the budget adjustment application form, submits the budget implementation analysis report, explains the content and reasons for the adjustment, and reports to the budget management committee for consideration and approval.

For major budget adjustments (the adjustment amount exceeds 20% of the budget or a fixed amount is a major adjustment), it shall be submitted to the board of directors for approval. Requests for budget adjustments approved by the Board of Directors or the Budget Management Committee shall be submitted to the Budget Department (for the preparation of budget adjustment notices).

2) Bottom-up budget adjustmentsWhen objective factors such as the external environment and internal conditions lead to major local changes in the company, and the conditions for budget adjustment are met, each responsibility center can submit an application for budget adjustment. The examination and approval procedure is as follows: the budget adjustment application department fills in the budget adjustment application form, submits the budget implementation analysis report, explains the content and reasons for the adjustment, submits it to the competent leader for approval, and submits it to the budget management department for review; After review, the budget management department shall put forward adjustment suggestions and submit them to the budget management committee for approval.

For major budget adjustments (the adjustment amount exceeds 20% of the budget or a fixed amount is a major adjustment), it shall be submitted to the board of directors for approval. Requests for budget adjustments approved by the Board of Directors or the Budget Management Committee shall be sent to the Budget Management Department (preparation of budget adjustment notices).

1. Local adjustments. It is an adjustment of certain items of budget revenue and expenditure, and it occurs frequently in the process of budget implementation. There are four main measures:

First, the use of the budget reserve**, including the reserve and the budget working capital. Provision funds are funds set aside in the general budget at all levels for non-specific purposes and earmarked to meet the needs of certain contingencies. The budget revolving fund is a special fund set up with the budget balance of previous years to balance the seasonal differences in budget revenue and expenditure and meet the needs of capital turnover.

Second, the additional retrospective reduction of the budget. On the basis of the total amount of the originally approved budget, the amount of budget income or expenditure is increased, which is the supplementary budget; Reducing the target of budget income or expenditure is the reduction of the budget.

Third, the flow of funds. It refers to the redistribution of budget funds due to the transfer in, transfer and change of use of funds between budget items under the condition of ensuring the completion of various work plans and not exceeding the total amount of original budget expenditure, also known as the flow of funds between account or budget expenditure items.

Fourth, budget transfers. Refers to the method of adjustment in which a budget unit is transferred to a new recipient due to a change in its affiliation. For example, the change of administrative divisions, the adjustment of the affiliation of state-owned enterprises and institutions, etc.

The conditions for budget adjustment are as follows:

1. Due to major changes in national policies and regulations, the basis for the preparation of the budget is not established, or there is a major deviation between the budget and the implementation results;

2. Due to major changes in the market environment, operating conditions and business policies, the budget is no longer applicable to the actual operation;

3. Internal organizational structure.

There are significant adjustments that result in the original budget not being applicable;

4. The occurrence of enterprise merger, division, etc.;

5. Force majeure.

events, which made the implementation of the budget impossible;

6. Other matters that the Budget Management Committee deems necessary to be adjusted.

The main form of budget adjustment is the additional retrospective reduction of budget targets.

The main content of budget adjustment: In the process of budget implementation, budget adjustment is divided into comprehensive adjustment and partial adjustment according to the different adjustment ranges.

a) Local adjustments (which occur frequently).

1. Use of reserve funds;

2 Additional retrospective reduction of the budget;

3. Expenditure of funds

4. Budget transfer

2) Comprehensive adjustment (not easy to adopt).

In case of catastrophic natural disasters, wars and other special circumstances, or due to abnormal development of the national economy, it is necessary to make a major adjustment to the original national economic and social development plan, it is necessary to make a comprehensive adjustment of the budget. The overhaul is effectively equivalent to a re-budgeting and does not happen very often.

Partial adjustment refers to the partial change of budget revenue and expenditure tasks and the use of funds, and is a method often used in budget adjustment.

The main content of layout adjustments:1Use of reserve funds. 2.Additions and subtractions of calculations. 3.Expenditure flows between budget expenditure items. 4.Budget transfers.

1. Divide the total amount of revenue and expenditure. That is, all the income of the local tribe organization is divided between the local government and the local government according to the total amount, and the sharing ratio is determined according to the percentage of the total annual fiscal expenditure of the local government approved by the local government to the total fiscal revenue. The total share method is simple and easy to implement, and it is tied to local interests, and income growth is rising.

However, the total amount of sharing is prone to the situation that the determination of the sharing ratio is not standardized, arbitrary, and difficult to determine. Under the method of total revenue sharing, it is also possible to implement the share of excess revenue and the share of income increase, which is to set a separate share ratio for the part of excess revenue or the part of income increase, so as to give the local government a higher retention rate and encourage the enthusiasm of local organizations to collect income. This is a marginal sharing method, for the local income is increasing, and for the marginal sharing ratio of ** is decreasing, so that the proportion of ** income in the total income is decreasing year by year.

2. Income classification and sharing. That is, the income is divided into fixed income, fixed proportion of income and adjustment income. In balancing local fiscal revenues and expenditures, local fixed revenues should first be offset against local normal expenditures, and when expenditures are insufficient, they will be allocated to local governments to share revenues in a fixed proportion, and then if they are insufficient, they will be allocated to transfer and share revenues.

The income classification and sharing method is also characterized by the fact that it is equal to local interests. However, this system is prone to cause local governments and concerns to share revenue, ignore non-sharing of income, and shadow the completion of the revenue plan.

Zero-based budgeting refers to the preparation of cost budgets without taking into account the past.

Accounting. It is a method of preparing a budget on the basis of a comprehensive balance based on the fact that all budget expenditures are zero, and whether the content of each expense and its expenditure standard during the budget period are considered one by one from the actual needs and possibilities.

The zero-based budgeting method is very different from the traditional adjustment budgeting method and has the following three characteristics:

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data-layout=right[/img]1.The basis of the budget is different.

The budget adjustment method is based on the results of the previous period, and the budget amount for the current period is determined based on the actual performance adjustment of the previous period. Zero-based budgeting is based on zero, and the amount of the budget for the current period is determined based on the importance of economic activity in the current period and the amount of funds available for allocation.

2 The objects of budgeting analysis are different.

Unlike the zero-based budgeting approach, which focuses on the cost-benefit analysis of newly added business activities, while the same business activities do not do an analytical study, the zero-based budgeting approach requires a cost-benefit analysis of all economic activities during the budget period.

3 Budgets are differently focused.

The budget adjustment method mainly focuses on the amount of money, and focuses on controlling the increase or decrease of the budget amount from a monetary perspective. In addition to focusing on the amount of money, zero-based budgeting mainly allocates limited funds based on the necessity and importance of business activities.