Budgeting and Financing Essay Example | Topics and Well Written Essays - 1500 words

Budgeting and Financing - Essay Example No matter how one refer to it, it's a tool to help him/her to prioritize spending and manage money-no matter how much or how little he/she has. A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy. Fiscal deficit is an economic phenomenon, where the Government's total expenditure surpasses the revenue generated. It is the difference between the government's total receipts (excluding borrowing) and total expenditure. Fiscal deficit gives the signal to the government about the total borrowing requirements from all sources. The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). The elements of the fiscal deficit are (a) the revenue deficit, which is the difference between the government's current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and (b) capital expenditure. The fiscal deficit can be financed by borrowing from the Reserve Bank of UK (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks). It is the fund used by an establishment to produce physical assets like property, equipments or industrial buildings. Capital expenditure is made by the establishment to consistently maintain the operational activities. Arguments: Fiscal deficit lead to inflation According to the view of renowned economist John Maynard Keynes, fiscal deficits facilitate nations to escape from economic recession. From another point of view, it is believed that government needs to avoid deficits to maintain a balanced budget policy. In order to relate high fiscal deficit to inflation, some economists believe that the portion of fiscal deficit. Expert recommendation Financial advisors recommend that the Government should not promote disinvestment to reduce fiscal deficits. Fiscal deficit can be reduced by bringing up revenues or by lowering expenditure. Logically, there are two ways in which the fiscal deficit can be reduced - by raising revenues or by reducing expenditure. However given the character of our State and the constraints of a liberalized economy, the government has not increased revenues. In fact, in budget after budget the government has actually given away tax cuts to the rich. Even when it has tried to raise revenues, it has been through counterproductive means like disinvestment. The main impact of the policy of reduced fiscal deficits has therefore been on the government's expenditure. This has had a number of effects. First, government investment in sectors such as agriculture has been cut. Secondly, expenditure on social sectors like education, health and poverty alleviation has been reduced leading to greater hardship for the poor already bearing the brunt of liberalization. Perhaps most importantly, in an economy going through a recession the government is not allowed to play any role in boosting demand. CATEGORY B Q. No. 1 Why

Divine Chocolate; Marketing and Communications Plan Essay

Divine Chocolate; Marketing and Communications Plan - Essay Example They create barriers in the distribution channel by offering attractive bonuses to retailers who surpass their preset targets. Divine also lacks the international economies of scale that the dominators enjoy. In a research conducted in 2007 divine held 0.3% of the total chocolate sales in the UK as compared to 83% market shared by the three dominates. The use of fair-trade certification has contributed significantly to the marketing communications of divine chocolates to the consumers. A research conducted in 2007n proved that most consumers had left other chocolate brands in favor of Divine due to the mark of quality and its splendid taste. It therefore, has been suggested that Divine should develop a marketing plan focused on communicating it product to retailers and final consumers on the basis of fair pricing, product differentiation and emphasis on quality. In conclusion, it has been established that though divine is a small organization it has a high potential of the top of the value chain. It all the features required to get their only solution is adopting a communication plan focusing on the retailers and attaining economies of scale. Divine chocolate company, is a manufacture fair-trade chocolates in UK and United States, marking its first establishment in the UK in 1996. It partners with Kuapa Kokoo cocoa growers from Ghana, comic relief and Christian aid. It has a unique trading system; the farmers are the main shareholders in the company. Its first product, Divine milk chocolate, has been launched in late 1998. Another range of its products include dark chocolate and drinking chocolate; it launched another product in 2000 called dubble, in collaboration with comic relief. The brand was later on launch in the US in early 2007. Currently three main organizations own divine chocolate company. These organizations include Kuapa Kokoo; a group of cocoa producers from Ghana own 45% of the shares, Twin trading