ADMINISTRATIVE BUDGET Meaning and
Definition
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An administrative budget refers to a financial plan implemented by an organization or government agency to allocate funds specifically for administrative purposes. It is a comprehensive assessment of the anticipated costs and expenses associated with managing administrative operations within an entity during a specified period, typically on a yearly basis.
The administrative budget is comprised of various components such as salaries and benefits for administrative staff, office supplies and equipment, facility maintenance and utilities, travel expenses, training and development, and other expenditures linked to the management and support functions of the organization. It aims to ensure that necessary resources are allocated appropriately to maintain the smooth functioning of administrative activities and support the overall goals and objectives of the entity.
The development of an administrative budget involves the participation of key stakeholders, including department heads and administrators responsible for overseeing administrative operations. These stakeholders provide input regarding their needs and anticipated expenses to ensure that the budget addresses all necessary activities and resources required for proper administration.
Once the administrative budget is approved, it serves as a financial guideline that helps management monitor and control administrative costs. Regular review and updates may be undertaken throughout the year to ensure that the allocated funds align with the evolving needs of the organization, as well as to identify potential cost-saving opportunities.
Etymology of ADMINISTRATIVE BUDGET
The word "administrative" comes from the Latin word "administrātivus", which is derived from the verb "administrāre", meaning "to manage or govern". It ultimately traces back to the Latin words "ad" (to) and "ministrāre" (to serve).
The word "budget" has its origins in Old French as "bougette", meaning "a small bag". It referred to a leather bag or wallet used to carry money. This term later evolved into "budget" in English, specifically referring to a financial plan or estimate of income and expenses.
When "administrative" is combined with "budget", it forms the compound term "administrative budget", which refers to the financial plan or allocation of funds for administrative purposes within an organization or government entity.
