INTRODUCTION
In this work the evolution of the budget will be exposed and we will see the main historical events from its beginning to the present.
The evolution of the budget has developed in various periods. The first originates from the late 18th century in England. Later, after the First World War, new systems were created based on cost control and private planning based on efficiency.
Finally, during the post-war period of the Second World War, in the United States the budget for programs and activities was implemented and the first budget departments were created.
DEVELOPING
Origin:
The budget is a tool of great importance for the projection in advance of quantitative and qualitative data that empowers the development of the organization in a certain period.
The concept of the budget has been implicit in human tasks from its beginning to the present day, survival being one of its main objectives; Based on this purpose, the inhabitants took advantage of and ensured the production of food to prevent famine in times of scarcity and this is how they guaranteed their survival. They surely had no idea that they were making estimates to forecast possible future events.
Ancient civilizations like the Egyptian people, approximately 2500 BC were recognized for the construction of gigantic pyramids. Planning and organizing skills singled out Egyptians at that time. The great pyramid of Cheops, is a great example of how the budget was applied, where they estimated their calculations to determine and allocate the resources they would need for construction such as: How many stones? How many men are needed ?, and countless examples demonstrate how they stipulated their projections.
In the Middle Ages, trade and the exchange of goods through money developed, accounting forms were established in which the income and expenses were recorded to determine the profits of each business. Likewise, the Egyptian and Roman empires imposed various types of taxes based on the resources of the people and with these resources they planned the possible wars they would face.
Evolution
The origins of the budget: " The theoretical and practical foundations as a planning and control tool date back to the end of the 18th century, when in the public sector, the British Parliament, presented the reports of government expenditures for its execution and subsequent control " (Burbano, 2005).
In 1820, France and its public sector adopted the method of budgeting, and the following year the United States introduced strict spending controls to budget and ensure state activities.
After the end of the First World War in 1918, the United States applied the control of the expenses to be used using the budget tool.
Later, between 1921 and 1925, with the rise of private companies, controls on expenses began to be implemented and adequate business planning was established in order to obtain appropriate yield margins and where companies grew rapidly. Given this growth in public institutions and public spending, the US government will authorize the creation of the National Budget Law.
In 1930 in Geneva Switzerland the first International Symposium is held and the basic principles of the budget system are determined.
In the 1930s in Mexico, large companies like General Motors Co. and later Ford Motors Co. adopted budgeting techniques, and the result was a success, profits were maximized, and costs were optimized.
At the end of World War II, the United States Department of Defense provides two classification systems, one by object of expenditure and the other by program, and later a budget was presented that includes federal government expenditures, projected and comparable.
Between 1960 and 1970, the US Department of Agriculture drew up the zero-based budget, without success. At the end of 1965, the President of the United States created the budget department and consequently a budget was prepared based on the results of the defense department and are introduced throughout the government for each operation based on its expenses, carried out by specialists, technicians, and administrators, they formulated budgets for programs based on background. In the early 1970s in the USA, Texas, through Peter A. Pyhrr, made a new and improved version of the zero-base budget, implemented by means of a decision that was applied only in the State of Georgia.
Currently, the rapid growth of economies on a global scale, the new paradigms of globalization, technology and culture have directly or indirectly affected the approaches of organizations, constant changes imply challenges for companies such as meeting the needs of customers, shareholders, employees, suppliers or state entities.
That is why now senior management is considering smart solutions in the short, medium and long term. Organizations have created budget departments in order to plan activities, control and measure the management of income and expenses, coordinate the operations to be carried out and achieve the proposed results.
Planning and process management is represented in a budget that consists of strategically programming objectives, goals, plans, and organizing periodic information and control. On the contrary, the mismanagement of financial budgets in companies has led to bankruptcy and in turn they cease to exist, in short, inefficiency and ineffectiveness cause problems.
CONCLUSIONS
- The budget is a fundamental tool for any person, natural or legal, in order to prevent possible future events and efficiently allocate resources. The first signs of budgeting were formed as a planning and control tool. The progress of the budget has generated greater analysis and improve the interpretation of costs in both the public and private sectors. The evolution of the budget has led to significant improvements in the design of modern budget systems that serve to better project management to make the right decisions. The United States efficiently carried out the objectives and made it possible to guarantee the activities of the State.The success of a company is constituted in the good management as the planning and budget control tools.
BIBLIOGRAPHIC REFERENCES
- Burbano, J. (2005). Budget. Mexico: Mc graw hill, González, JR (1999). Budget. Mexico: ECASA. López, T. (2010). ABC costs and budgets: a tool for productivity. Bogota: ECOE.Padilla, DR (2008). Administrative accounting. Mexico: McGraw Hill.Vlaemminck, J. (1961). Accounting history and doctrines. Madrid: AXES.
