Cost and Financing in Open Schooling/Budgeting/Introduction

Introduction
Budgets are important financial planning and management tools that list all projected revenue and expenditure for a particular period, often a financial year (FY). For many managers of ODL institutions, the annual budgeting exercise is simply a chore and monitoring the draw down of budgeted funds poses unnecessary constraints on how they run their departments.

There appear to be a bewildering array of budgeting models, and each government and ODL institution seems to have its own way of going about it, developed through years of experience. It would be impossible to provide a comprehensive overview of the range of processes currently in use in Commonwealth countries. Instead, this unit aims to introduce a range of basic approaches to budgeting and to suggest ways in which these can be of assistance in managing ODL programmes. These approaches or budgeting models are:
 * Incremental budgeting
 * Zero-Based Budgeting (ZBB)
 * Periodic ZBB
 * Service-Level Budgeting (Modified ZBB)
 * Performance Based Budgeting (PBB)

The problems associated with securing sufficient funds to finance budget projections are discussed in Units 10 and 11.