Evaluation of budgetary practices in the private sector bank of Bangladesh

Abstract

Budgeting is no more the act of „matching‟ the figures of income and expenditures as had been in the past. It has come out of age. As a major tool of management control, budget does not only set performance standards for measurement and control; it is a better tool for future planning. Besides, budget recognizes the impacts of external standards through cognizance of business trends and competitors‟ performance. Modern budgetary practices also recognize the human behavioral aspects of budget through participatory approach model of budgeting. The prime objectives of this research study were to determine how far the practices of budget are prevalent in the private commercial banks in Bangladesh and the attitudes of the management towards its effectiveness. A qualitative research method was followed. Questionnaire was designed to extract data and information as were considered necessary in the circumstances. Secondary data source was also used. Extracted data and information were duly interpreted and analyzed. The analysis of the findings indicates that managements of all the sample banks, in general, are positive in their attitudes towards budget; budget is prepared and implemented in all the banks. But at the same time, procedural lacks and lapses were also abundant in budgetary practices in some of the sample banks. In other words, budget is partly used and full benefits of budgetary practices are not reaped by these banks.