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mutual trust among participants. In the knowledge economy, such

collaborative models are essential to meet the ever-growing and diverse
information needs of academic, research, and public library users.

Unit -1

Question 1: Discuss the sources of library finance and explain the modern techniques of

resource mobilization. Examine the importance of budgeting in libraries and describe

different budgeting techniques and methods used in library financial planning. Also,
highlight the role of budgetary control in ensuring effective financial management.

Answer:

Introduction

Financial management is one of the main pillars of effective library administration. As
libraries continue to evolve in their roles as information centers and community hubs,

they require strategic vision and strong financial planning. Even if the library is

academic, public, special, or private, economic sustainability is essential for acquiring
resources, maintaining infrastructure, delivering services, and embracing technological

innovations. This lesson examines the comprehensive landscape of financial

management in libraries, highlighting the diverse sources of funding, the modern
techniques used to mobilize resources, the importance of budgeting, and the role of

budgetary control in ensuring efficient and accountable financial practices.

Sources of Library Finance

The financial architecture of a library rests on its sources of funding. Different libraries
rely on different economic models, but all try to achieve long-term viability and

responsiveness to user needs.

Often, government support serves as the primary source of funding for public and

academic libraries. This funding may come from central, state, or local governments

and is often provided through educational, cultural, or developmental allocations. The
recurring budget typically covers operational expenses, while special grants may be

awarded for infrastructure development, digitization projects, or research programs.

Institutional support is another significant source for academic libraries.

Universities and colleges set aside a portion of their annual institutional budget

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