Indian Journal of Information Sources and Services

ISSN: 2231-6094, Vol.2 No.2, 2012, pp.55-58

© The Research Publication, www.trp.org.in

Analysis of Library Budget: With Special Reference to Sajaji Rao

Gaekwad Central Library Banaras Hindu University, Varanasi, India
M.AnandaMurugan
Deputy Librarian, Banaras Hindu University, Varanasi – 221005, Uttar Pradesh, India
E-mail: [email protected]

Abstract - University libraries all over the world have their own Binding and other stationery needed to process and maintain
place of importance in the scheme of higher learning. Libraries the Books/Journals
are not only repositories of knowledge but also dispensers of
such knowledge. The development and execution of the library II. BUDGET
budget is one of the library director's most important tasks.
The process should be integrated with the planning and
evaluation of library services. Once reviewed and approved by Budget is defined as, “an estimate, often itemized, of
the library board, the budget serves as a roadmap for the expected income and expense, or operating results, for a
delivery of library services in the subsequent year. This given period in the future.” Thus a library budget is an
chapter will outline a typical procedure for creating and estimate of expected income and expenditure of the library
approving the library budget. This study discusses the for the coming year. As budget is an estimate, therefore, it
execution and administration of the library budget. The can be altered, if the circumstances change. It needs to be
budget process provides an opportunity to request necessary flexible enough to meet the changing needs. However, any
funding for established services, as well as supplemental alteration should be carried out very carefully. Budgeting in
support to address increased use or provide new services. The
libraries is usually done on yearly basis. On the other hand
budget also creates a way to track required revenues and
reportable expenditures. an annual financial report or statement tells us as to what
Keywords: Library Budget, Banaras Hindu University was achieved as well as what could not be done last year.

I. INTRODUCTION III. PURPOSE AND IMPORTANCE OF BUDGET

Library management involves functions such as planning, By means of a budget, a library is able to limit its
organizing, leading, and controlling. Planning is about expenditure to income. In addition, a budget enables it do
systematically making decisions about the library goals. spending in a systematic manner.
University is about assembling and coordinating human,
financial, physical, informational, and other resources Budgeting is the primary means by which formulated plans
needed to achieve library goals. Leading is about functions can be carried out. Budgeting is considered important from
that involve efforts on the part of the librarian to stimulate the administrative point of view as, “it serves as an effective
high performance by employees, and controlling about management tool. It gives all direction; it coordinates all
monitoring various library operations and services. These administrative functions by guaranteeing exchange of
four management functions are highly integrated, but information on policies, programmes and finances; it
libraries that excel in organizing material resources and in insures automatic, regular consideration and re-evaluation
leading their human capital are known to give better of long range plans. Budget making also provides the
performance. occasion for periodic review and reassessment of the
changing needs of the constituency and resources. Burget is
While there is no statutory requirement that libraries the most important control device to measure programmes
develop budget requests to submit to their governing of a library and their effectiveness. Budget is used as a tool
authorities require them, and a carefully considered budget of planning and control. It reflects the goals and objectives
is one of the responsibilities in librarian role. In order to of the library. It also defines the authority of the librarian
operate effectively and maximize your ability to obtain towards achievement of those goals and objectives. Thus
appropriate local funds, you and your board should create budget is crucial to the success of a library towards meeting
and follow a budget each year. By going through a formal needs of its users.
budget process, libraries establish a financial foundation for
library operations. Budget must have contingency funds for

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M.AnandaMurugan

IV. FACTORS INVOLVED VI. BUDGET PROCESS

Budget is affected by the following factors In University level, the annual budgetary process involves
1. Size of library in terms of collection, staff and the following 3 phases:
scale, of its operations
2. Location and its physical arrangement, 1. PREPARATION: The preparation phase is usually the
3. Kinds of library services, responsibility of the University librarian. It is accomplished
4. Types of users served, by analyzing past financial data and allocating the
5. Rising costs, and anticipated library resources to provide the various services
6. Period covered (usually it will be one year). and activities for library users.
V. TYPES OF BUDGET 2. ADOPTION: Once the budget has been prepared, it is
presented to the University Financial Committee for
Following are the types of budget consideration, possible modification and final approval.
1. LINE-ITEM BUDGET: This is most common type of 3. EXECUTION: Budgetary accounts are set up to record
budget. Here the expenditure is divided into broad the estimated revenue and expenditures for the appropriate
categories such as; Salary and wages, Books, funds. As economic conditions and circumstances change,
periodicals and other reading materials, equipment, budget amounts can be amended by a process determined by
binding, stationary and printing, supplies, insurance and the University Financial Committee. Typically, the process
miscellaneous. It is possible to list items within broad is very similar to that of the original budget. The budgetary
categories, however this brings in inflexibility, whereby amounts are then compared with actual amounts
money from one item cannot be shifted to another one periodically (usually monthly). This allows the university
easily. Suppose prices of books gone up by 10% then librarian to effectively operate the library.
authorities would understand the reason for 10%
increase in book allocation.
VII. THE NEED FOR BUDGETING IN LIBRARIES
2. LUMP SUM BUDGET: In this approach, a certain A budget is a guide or directive for financial management.
amount of money is allocated to the library. The library Libraries need funds for services, and these services must be
decides as to how that amount is going to be allocated budgeted for. Fletcher (1990) gives two definitions of a
to different categories. This gives considerable freedom budget, calling it "the overall picture of allocations (for
to the librarian to allocate funds. expenditure) and income," as well as "the financial
allocation for specific purpose or purposes during a given
3. FORMULA BUDGET: Here predetermined standards period." Although libraries are service-oriented and have no
are applied for allocation of money. The formula is revenue-generating motives or objectives, they still
going to be allocated to different categories. Thus gives obviously require a budget.
considerable freedom to a librarian to allocate funds.
The need for budgets in libraries is increasingly important.
4. PERFORMANCE BUDGET: It “bases expenditures on The collection development (books and journals) that must
the performance of activities and emphasizes efficiency be managed continues to grow. There is an increasing
operations” describes in detail the resources (men, demand for online resources and services. Libraries must
material and money) required to accomplish the effectively divide funds between staff and materials, which
proposal and extend of programme to be achieved include acquisitions, services, and equipment. University
during the next fiscal year. Library financial management is becoming more
decentralized. It is within this framework that budgeting for
5. PROGRAMME BUDGET: Here we are concerned with BHU library is approached.
activities of organization but individual items or
expenditures are ignored. The amounts are allocated to
VIII. SOURCES OF FUNDING
programmes or services rendered. It does not require
expensive cost measurement studies implied in Fines may be a source of library revenue, the revenue
performance budget. stream is minimal compared to other sources, and fines can
create ill feelings among borrowers, or discourage use of the
6. PLANNING PROGRAMMING BUDGETING library. Fees and charges for such things as making
SYSTEM: Many complex organizations including some computer printouts and using a photo copy machine are
libraries are using PPBS a technique, which combines permitted. Very small amounts of income are made from
the best of programme budgeting and performance
budgeting.

IJISS Vol.2 No.2 July-December 2012 56

 Analysis of Library Budget: With Special Reference to Sajaji Rao Gaekwad Central Library Banaras Hindu University, Varanasi, India

reprography and binding, Grants and gifts can be an expenditure. All the learning resources needed by the
excellent source of supplementary funds for Library. project and their faculties are procured using their own
project funds.
IX. LIBRARY BUDGET /FINANCES
X. PROCUREMENT OF RESOURCES
Library budget means the financial allocation to procure
documents and provide access to the information resources. Library will grow only when it is supported by all who
The present annual library budget of the library has the make use of its resources. Procurement of learning resource
following components: constitutes the primary responsibility of library. Library
makes a systematic effort in building up the collection
1. UGC Plan Grants development by identifying, evaluating, selecting,
2. Allocation from University processing and making it available to the users. Whether it’s
3. Trust/endowment Grants a book, journal or an online database, any learning resource
4. Five year plan Grand– every five year plan of central that gets added goes through a rigorous selection process.
Government And since this collection building requires huge sums of
4. Allocation from Project Grants money. it is very much essential that libraries have a well
thought out collection development policy.
Several projects are being carried out at BHU. Most of them
depend upon to a great extent on library infrastructure for XI. BUDGET OF BANARAS HINDU UNIVERSITY
the learning resources and internet access. However, not all LIBRARY
projects have a separate allocation to be given to library for
using the library facility. In this case, each project, should Allocation of Library budget to the University is presented
earmark at least 8 % of its total project cost towards library in Table 1

TABLE 1 BUDGET ANALYSIS OF BHU LIBRARY FOR LAST 10 YEARS

Budget Year For Print For Online Total
S.No. Percent Percent
(in Lac) (in Lac) (in Lac)
1 2001-2002 344 100 - - 344
2 2002-2003 376 100 - - 376
3 2003-2004 247 100 - - 247
4 2004-2005 226 92 19.7 8 245.7
5 2005-2006 254 92 23.2 8 277.2
6 2006-2007 256 46 304.6 54 561
7 2007-2008 223 58 160.5 42 384
8 2008-2009 215 52 199.58 48 414.58
9 2009-2010 136 30 323.14 70 459
10 2010-2011 129 28 331 72 460
11 2011-2012 82.5 22 291 78 374

350
300
250
200
Print
150
Online
100
50
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Fig 1 Amount spend from the year 2007- 2012 for Print and Online resources.

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M.AnandaMurugan

In this Table 1 and Figure 1 clearly stated the ten years The University of Witwatersrand, Zimbabwe also has a
budget of Banaras Hindu University. Last eight years (From budgeting system that caters to technology. The budget can
2004) occupies high amount for subscribing electronic be accessed
resources. It is gradually increase the subscription of e- at http://www.ac.za/library/about/annreport2004.pdf.
resources is high. Last 3 years shows subscription print
resources is decreasing. In future, university library REFERENCES
planning the budget in keep in mind of this study for
[1] Robert D.Stueart and JohnTaylor Eastlick. (1981). Library
procuring the print and electronic resources.
Management, 2nd ed., Littleton, Col., Libraries Unlimited, , pp.168.
[2] Ranganathan, S.R. (1964). “Library development plan”, Library
XII. RECOMMENDATIONS AND CONCLUSIONS Science, Vol.1, No.4, pp.283
[3] Elizabeth stone. (1967). Training for the improvement of library
administration, Urbana, University of Illinois, Graduate school of
In an electronic age, budgeting for libraries is of utmost
Library Science, p.62
importance. The University library budget is the framework [4] Emojorho, D. (2004). Budgets and budgeting in selected Nigerian
for running core library activities. No matter how small the University Libraries. The Bottom Line: Managing Library Finances
resources, a plan must be made and or implemented. 17(3): 98-101(4).
[5] Fletcher, John (1990). Financial Management Systems. In: Line M.
B. (Ed.). AcademicLibrary Management. London: The Library
Libraries should cultivate the culture of budgeting. Libraries Association, p.216.
are complex entities with enormous resources that require [6] Fombad, M. and Mutula, S. M. (2003). Collection development
planning. practices at the University of Botswana library (UBL).Malaysian
Journal of Library & Information Science 8(1): 65-76.
Librarians should embrace the principle of decentralized
budgeting. Divisional, sectional and unit heads, and
assistant librarians would then be involved in preparing and
managing library budgets. This will enhance managerial
skills and democratize financial management resulting in
more transparency and accountability in the library's
financial dealings.

Finally, budgeting in library services should necessarily

include personnel, tools, equipment, and supplies, among
other things. In an electronic age where most things have
stopped to be done manually, provision for adequate library
services infrastructure is a priority.

XIII. MODELS OF LIBRARY BUDGETS

There are a number of useful models for library budgeting.

The Sno-Isle Libraries are a large public library system that
provides library service to residents of Island and
Snohomish counties in Washington State. Each annual
budget includes an increase over the previous year, basing
the figures on percentages. For example, technical services
had 25.2% of the total budget in 2005, which was increased
to 25.6% in 2006. The technical services budget has an
appropriate prominence, receiving a quarter of the total
library budget (http://www.sno-isle.org/page/?ID=2036).

The University of Alberta Library budgets by committing

itself to digital collection research, content creation, and
access services. They identify staffing for the digital
environment as critical for the next few years. They have
also planned extensively for technology replacement
through "lifecycle budgeting."
(http://www.library.ualberta.ca/aboutus/budget/index.cfm).

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