fiscal planning final.pptx

8/20/2019 FISCAL PLANNING FINAL.pptx

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L PLANNIN



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Fiscal• 1. (Economics) of or

relating togovernment

nances• . of or involving

nancial matters



Fiscal• s!non!ms"

– #$%getar! is somet&ing relate% toa budget (t&e amo$nt of mone! availa'le or a nancial lan fors en%ing t&at mone!).

– Financial is t&e a! in &ic& mone! is $se% an% &an%le%

– monetar! relates to mone! an%&o it is s$ lie% to* an% circ$latesin* an econom!.



+one!,



Fiscal Planning

•

t&e rocess of ma-ing lansfor nancial matters• t&e rocess of t&in-ing a'o$t

an% organi ing t&e activitiesre/$ire% to ac&ieve a %esire%

goal involving nances



im ortance of

Fiscal Planning

• essential to ens$re scal olic!res onsi'ilit! an% $'lic services

it& /$alit! an% e0cienc!. It is

t&ro$g& scal lanning t&atgovernment* resents c$rrent scalsit$ation* esta'lis&es its goals an%

strategies* i%enti es ris-s to $'licnance an% a%o ts 'est racticesof assessment* monitoring an%

im lementation of $'lic olicies.



#2EC3I4ES FFISCAL PLANNING

• 3o %etermine ca ital re/$irements – %e en% $ on factors li-e cost of c$rrent

an% 5e% assets

• 3o %etermine ca ital str$ct$re – com osition of ca ital* i.e. t&e relative

-in% an% ro ortion of ca ital re/$ire%in t&e '$siness.



• 3o frame nancial olicies – In scal lanning t&e olicies are frame% it&

regar%s to cas& control* len%ing* 'orro ings*etc.

• 3o $tili e nancial reso$rces a%e/$atel! – 3&is is to ens$re t&at t&e scarce nancial

reso$rces are ma5imall! $tili e% in t&e 'estossi'le manner at least cost in or%er to get

ma5im$m ret$rns on investment.



S3EPS INFISCAL PLANNING

• 6E3E7+INA3I N F FINANCIAL#2EC3I4ESE5am le"

8gro earnings er s&are19: an$all!

8'oost ann$al ret$rn ofinvestment from 19: to ;:



• ES3I+A3E 3<E

CAPI3AL7E=>I7E+EN3S

•

F 7+>LA3I N FFINANCIAL

P LICIES



= > ES 3 I N S?



3<A3 S

ALL

F L@S

fiscal planning final.pptx

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