EnglishLibrary Science

Library budget: It’s objectives & methods

Hossain, M. S. (2012)

Library Budget

Library BudgetsThe term budgeting refers to the process of budget planning and preparation, budgetary control and related procedures. The formal presentation of the plan is called a budget. The budget is the written statement of income and expenditure during the year. It covers all items of work to be taken up over a specified period of time in the future. thus an overall budget covering the institution as a whole is also known as a master budget. A library is an estimate of expected income and expenditure of the library for the coming year. Being merely an estimate, it can be altered, due to change in circumstances. Budgeting is usually done on a yearly basis. The most central aspect of the financial management of the library is the budget, which is a statement of income and expenditure of the library. It is also an instrument of control, communication, coordination, evaluation, and motivation.

Objectives of Library budgeting:

The overall objective of library budgeting is to plan different phases of library operations.

Coordinate activities of different departments of the library and to ensure effective control over it. Thus specific objectives are as follows:

  1. To predict the library’s future services, services cost and other costs to achieve the desired goal.
  2. To anticipate the library’s future financial condition and future needs for funds with a view to keeping the library active and up-to-date.
  3. To coordinate the efforts to different departments and departments of the library towards the common objectives.
  4. To accelerate the efficiency of operations of different divisions and departments of the library.
  5. To fix the responsibilities of the different departmental heads.
  6. To have effective control over the library’s fund.


Factors affecting budget.

  1. Size of the library- collection, staff, users, and services points.
  2. Location.
  3. Kinds of library services.
  4. Types of users.

There are few methods of preparing library budgets, which includes both the traditional approaches used by Marty organizations and more innovative one that has recently found their way into libraries.

Methods of library budget:

a. Line by line item budget: In this type of budget, the items of the expenditure are divided line by line, into broad categories such as books and journals, salaries and allowances equipment, contingencies, etc. With further sub-divisions of each of these broad categories. This is the usual traditional method which, by taking into account past expenditure of the previous years’ allocation, assuming that all current programmers’ are good and necessary. this budgetary method does not go into the evaluation of activities and services of performance.

b. Lump-sum budget: In a lump-sum budget, a certain amount of money is allocated to the library. In this, the library got the freedom to decide as to how the amount is going to be allocated to different categories.

c. Formula budget: In formula budget, predetermined standards are applied for the allocation of money. Such a budget is technical and easy to prepare. It does not require special skills to prepare the same.

d. Programme budget: It does not estimate the expenditure on the basis of the individual items. it is focused on the activities that the library plans. Hence the budget is prepared on the basis of the cost of programme. Every year, the library has to decide whether a programme has to continue, get modified, or deleted.

e. Performance budget: This method is similar to programme budget but in this method, the emphasis is given to performance in place of programmes. The expenditure is based on the performances of the activities and the stress is given to operational efficiency. The careful accumulation of quantitative data on all activities over a period of time is required. Management techniques such as cost-benefit analysis are used to measure the performance and establish med norms. Hence this method measures only the quantity, not quality.

f. Planning programming budgeting system: PPBS method combines the best of both program budget and performance budget and focuses on planning. it begins with the establishment of goals and objectives and ends with the formulation of programmes and services. This method combines the functions of planning activities. Programmes and services, translating them into tangible projects and finally presents the requirements in budgetary terms.

g. Zero-based budget: This method is similar to PPBS conceptually but does not take into account what happened in the past but emphasizes the current activities. Every programme and activity is spelled out in detail, and request for financial support to there has to be established afresh every year. In fact, no activating could continue simply because that activity was undertaken the previous year.

For citing this article use:

  • Hossain, M. S. (2012). Collection development in central library, university of delhi and central library, jawaharlal nehru university: a survey. Retrieved from: http://hdl.handle.net/10603/49881


Declaration: Articles shared in this blog are collected from different sources available on the internet to help students of Library and Information Science. Sources are mentioned in the reference section of the article. If you have any objections about the content of this blog, feel free to contact the site admin at media24xnew@gmail.com

One Comment

  1. sir i want to open small library for my city. many child wnat to read in one roof what is budget need to open a small library….

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