Экономические науки/12.Экономика сельского хозяйства

Давыдова О.А., Казарян М.Т.

Кузбасский государственный технический университет имени Т.Ф. Горбачева, Россия

Peculiarities of introducing principles of rolling budgeting in agriculture

Agriculture should not be seen only as an industry that provides the country with food and feed industry with raw material. It has no less important strategic role as the main customer and consumer of industrial products forming, ultimately, profits in various sectors of national economy. At the moment, there is a significant decline in the purchasing power of the population, which limits the rise in prices of agricultural products, especially in the food market, as similar but cheaper imported products enter the market.

Insolvency of an agricultural enterprise, its inability to manage risk and to attract investment are caused primarily by the fact that the agricultural sector makes inefficient use of such tool as planning and budgeting.

At present, in conditions of instable economic situation and the increased competition with foreign countries the problem of planning and budgeting is very important.
In most cases, agricultural organizations apply periodic budgeting. In this regard, there are difficulties and problems in the process of planning and further implementation of these plans.

Among such problems of periodic budgeting there are:

1. Loss of relevance of the industry budget. Incomplete of structural reforms, rapidly changing consumer markets and many other factors, all these hinders the correct planning even for a year, not to mention a longer term.

2. Limitation of the planning period at the end of the year. If at the beginning of the period an agriculture organization has a plan for the year ahead, by the end of the planning period it faces the restriction of the plan by several months. The consequence of this may be inconsistency of decisions in general.

3. Budgeting is rarely made in accordance with the strategy.

The transition to a rolling budgeting has not just made possible to solve some of these problems. It will also change the perception of the budgeting process and the attitude thereto in agricultural organizations.

There are various definitions of rolling budgeting. However, in my opinion, the most accurate one is given by A.A. Karpov. The author defines rolling budgeting as "the planning process, where the time period is divided into several stages, on completing thereof the budget targets of service organizations are move to the same step forward."

The essence of such planning is that after a certain part of the planning period, the plans for the remainder of the period are adjusted and new plans are formed for a period equal to the expired parts of the previously planned period. Rolling budgeting is characterized by division of the planning period into several stages, on completing which the budget plans for the organization move forward by the same part. An organization which planned for the year, after analyzing the implementation of budget plans for the first quarter, makes appropriate adjustments to the budget plans before the end of the year and makes the budget for the first quarter of the next year.

Compared with the periodic budgeting system introduction of rolling budgeting techniques provides a number of advantages:

1. Increasing the accuracy of activity forecasting through regular consideration of changes, as well as adjustment of the plans depending on the results already achieved.

2. Availability of a forecast of the agricultural industry activities with permanent planning.

3. Positive motivation of employees through the use of quarterly budget revisions and clarifications.

4. There is a clear determination of the objectives for which there are specific guidelines for projecting targets. As they can contribute to the timely identification of deviations from budget data, finding their causes, they allow for making decisions to eliminate the negative factors that, in general, would contribute to the achievement of organizational goals.

5. Organization minimizes financial risks associated with the implementation of various projects. Financial flows become transparent for the head of the organization. They have the ability to prioritize payments, monitor and control the financial results of the organization as a whole, plan cash flow, income and expenses.

It should be noted that rolling budgeting is more costly in comparison with periodic one during the introductory stage. Application of adequately used rolling budgeting in a company must be preceded by serious work on the formation of a special environment, by explanation of the specifics of the tool and importance of teamwork.

Besides, increase of the budgeting process complexity and the increase in material costs should be mentioned. Using the rolling budgeting system leads to attraction of professionals in this area. To achieve this one has to create more jobs and even whole divisions. Speaking about the increasing costs we must not forget the considerable investment of time of managers and specialists. Certainly, more frequent involvement of the company's employees to the budget process entails the cumulative increase in the cost of time.

In general, rolling budgeting requires constant attention, participation of managers at all levels of the organization and its personnel. Only in this case the system of budgeting will give desired efficiency of agricultural production.

Литература:

1. Минаков И.А. Экономика сельского хозяйства. - Инфра-М, 2013г.,352с.

2. Костина Г.Ю. Рабочая система бюджетирования: техника внедрения.- Журнал «Планово-экономический отдел» №2, 2013г.

3. М.Г. Пиляев Особенности внедрения принципов скользящего бюджетирования в интегрированных компаниях, 2009г.

4. Карпов А.А. Бюджетирование как инструмент управления. – М: Результат и качество, 2003., 356с.