A budget is an annual account of income and expenditure. In general, a budget is a detailed account of how much money the government will receive and spend from various sources in a year. In other words, a budget is a yearly prospective account of receipts and expenditures, item by item. In practice, the budget consists of a record of the previous year’s expenditure, a record of the current year’s expenditure, and a record of the potential receipts and expenditure of the next year. According to Professor J. F. Duc,” A budget in the central sense of the term is a financial plan for a specified period of time”.

Professor Taylor has called the budget a high-level financial plan of the government.

The library is a non-profit service institution. Its main function is to provide various types of information and reading services to people from all walks of life. The income of such an institution is negligible, the expenditure is the main one. Therefore, it is not possible to maintain a balance between income and expenditure to a large extent. Therefore, it is necessary to formulate a good plan and plan in the expenditure of the library. In this way, the expenditure becomes fruitful. Most libraries are financially insolvent. Even in the midst of this financial insolvency, austerity can bring some comfort and relief. The usefulness of the budget is recognized in all types of institutions, starting from libraries. The rationality of the need is seen everywhere and money is allocated in the budget accordingly.

Essential aspects of budget preparation

For proper budget preparation, it is necessary to pay attention to the following issues.

Namely –

1. Special attention should be paid to ensuring that the budget is balanced;

2. The budget should be prepared by maintaining a balance between income and expenditure;

3. The budget should be realistic and effective;

4. The expenditure should be effective.

Sources of income of the library:

The library is a non-profit service institution. In such an institution, its own income is very negligible. The allocation received by the government is the main source of this income. The sources of income of the library are as follows:

1. Allocation received from the government. In this case, the government allocates money to the library sector like various sectors (such as education sector, defense sector, etc.). Its general allocation is given in favor of the ministry under which the library is located.

2. Annual allocation of the authority. The authority refers to the institution to which the library is attached. For example, college library, university library, etc. In this case, the money received from the annual allocation of the main institution is the annual allocation of the authority.

3. Possible donations. Sometimes, money and book materials are received as donations from individuals or from other institutions, nationally and internationally. For example, Asia Foundation, Save the Children, etc.

4. Subscriptions received from members.

5. Fines collected from members.

6. Proceeds from the sale of publications, if the library has its own publications.

6. Proceeds from the sale of old and used newspapers, magazines and periodicals.

7. Income received from rental of auditorium and seminar rooms.

8. Income received from photocopying or reprographic services.

10. Income received from translation services, literary search services, document delivery services, etc.

11. Income received from rental of library premises or book rental.

12. Income received from internet services.

12. Miscellaneous

Expenditure categories:

Despite limited income, the library has a high expenditure. In particular, a large portion of the allocated funds is spent on salaries, allowances and other grants to employees of the library.

2. Expenditure on purchase of books.

3. Expenditure on purchase of newspapers and periodicals.

4. Electricity, water, gas, telephone, internet and mobile expenses.

5. Book and magazine binding expenses.

6. House rent and tax expenses.

7. Office stationery purchase expenses.

8. Furniture and equipment purchase.

9. Postage expenses.

10. Insurance expenses.

11. Building maintenance expenses.

12. Furniture and equipment repair expenses.

13. Miscellaneous expenses

Renowned author B.M. Headicar, in his book “A Manual of Library Organization”, has mentioned the following percentage of departmental expenditure for approving the library budget:

 Types of Expenses:

Library expenses can be divided into the following three categories. Namely –

1. Recurring expenses

2. Non-recurring expenses

3. One-time expenses

1. Recurring expenses: Recurring expenses refer to expenses that are regular. That is, the expenses that are regularly incurred annually in different sectors of the library are called recurring expenses. Such as salary allowance, purchase of books, electricity, postage, telephone, binding, stationery and other incidental expenses.

2, Non-recurring expenses

The expenses incurred for the maintenance, preservation and care of library materials are called non-recurring expenses. Non-recurring expenses are not the same every year. Loan repayment is also included in non-recurring expenses.

3. One-time expenses:

This type of expense is not a regular annual expense of the library. Such expenses are incurred occasionally for special needs. Such expenses are incurred for the construction of library buildings, purchase of catalog cabinets, furniture, equipment, library digitization tools, etc. Through this, the assets of the library increase. This enriches the library’s collection.

Budget Structure:

Eminent library scientist Dr. S. R. Ranganathan has recommended the department-wise annual recurrent expenditure of various libraries as follows:

Public Library

University Library:

College Library:

Special Library:

The annual expenditure recommendation for libraries by sector prepared by Ranganathan shows that the maximum expenditure on salaries and allowances of the employees in every type of library is 50% of the total expenditure. According to Ranganathan’s recommendation, the ratio of salaries and allowances of the employees, textbooks and other expenses should be 5:4:1 in all types of libraries.

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