Abstract:
Budget and Budgetary control, both at management and operation level looks at the
future and lays down what has to be achieved, Control and checks whether or not the
plans are realized, and puts into effect corrective measures where deviation or shortfall is
occurring. This research examines the budget practices in budgetary control system and
performance evaluation by applying presenting an analysis of survey data. Recent
developments such as globalization, strong competition and rapid advances in
information technology have substantially transformed the business environment.
Therefore organizations have excellent control over their budget otherwise will not be
able t complete effectively.
An empirical study was undertaken, using the correlation analysis and hypothesis testing.
In the most of cases considered, established the presents of strong relationship between
the actual and budgeted revenue and expenditure. The research uses some statistical
analysis to examine and evaluate the collected budgetary information and presents the
findings and conclusions. The result show that Kalmunai Municipal council uses budgets
as part of their planning and control mechanisms is used as a performance evaluation tool
and to exercise that the accounting information process is functioning appropriately.
Following our findings we advice the managers and staff to pay the more attention to
their budgetary control system.
