Page 9 - management

 The budgeting process provides a structured approach to determine how funds

will be allocated among various library activities, including collection
development, subscriptions, staff salaries, maintenance, technology upgrades,

and user education programs. It makes sure limited resources are used
judiciously and strategically.

 From a governance perspective, budgeting establishes financial discipline.

Library authorities and administrators must justify expenses, align them with
organizational goals, and document usage in formal reports. This promotes

transparency, instills trust among stakeholders, and supports audits and
evaluations.

 Budgeting helps with performance measurement. When funds are earmarked

for specific activities, their implementation and impact can be assessed. This
enables library managers to understand the cost-benefit dynamics, focus on

effective programs, and make informed decisions for planning.
 A substantial budget also lets libraries plan for emergencies or future

investments. By creating reserve funds or contingency budgets, libraries can
address unforeseen challenges such as rising journal subscription costs,

infrastructure repairs, or sudden shifts in user demand.

Budgeting Techniques and Methods in Library Planning

Libraries employ various budgeting methods tailored to their size, governance

structure, and financial environment. Each technique has its strengths and is chosen

based on the planning and control required for the project.

The Line-Item Budgeting method remains the most commonly used approach. In this

method, expenses are grouped into predefined categories such as books, periodicals,
equipment, and salaries. Each item is assigned a specific monetary allocation. The

technique is simple, easily understood by stakeholders, and helps with detailed
spending tracking. However, it may not encourage innovation or adaptability.

Performance Budgeting focuses on the outcomes or services delivered rather than the

inputs. Funds are linked to specific functions, such as the number of reference queries

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