Development Planning

1. Budgeting

A budget is a comprehensive financial plan that outlines the estimated revenues and expenses of an
organization over a specific period of time. Budgeting is a planning tool that helps organizations
allocate resources and manage their finances.

Roles of Budget as A Planning Tool

Goal Setting: A budget helps in setting financial goals and objectives for an individual, family, or
organization. It provides a framework to align financial activities with specific targets.

Prioritization: A budget helps in prioritizing expenses based on the available resources, needs, and
goals. It enables individuals and organizations to make informed decisions about where to allocate
their financial resources.

Forecasting: A budget helps in forecasting income, expenses, and cash flows for a given period. It
provides an estimate of the financial resources needed to achieve specific goals and objectives.

Control tool: A budget helps in controlling spending and expenses by setting limits and monitoring
progress. It enables individuals and organizations to stay within their means and avoid overspending.

Communication: A budget serves as a communication tool between various stakeholders, including

managers, employees, shareholders, creditors, and investors. It provides a clear picture of the
financial health of an organization.

Resource Allocation: A budget helps in allocating resources, such as labor, materials, and capital, to
different projects and activities. It enables organizations to optimize the use of their resources.

Performance Evaluation: A budget helps in evaluating performance by comparing actual results

with planned results. It enables individuals and organizations to identify areas of improvement and
make adjustments.

Risk Management: A budget helps in identifying and managing financial risks, such as unexpected
expenses, revenue shortfalls, and cash flow problems. It enables individuals and organizations to
prepare for unforeseen events.
Motivation: A budget helps in motivating individuals and teams to achieve their financial goals and
objectives. It provides a sense of direction and purpose, which can increase motivation and
productivity.

Decision Making: A budget helps in making informed decisions about financial matters, such as
investments, savings, and expenses. It provides a framework for evaluating options and selecting the
best course of action.

2. Development plan implementation.

Development plan implementation is the process of translating a development plan into action. It
includes the activities, resources, and strategies necessary to make the plan successful.

Challenges facing development plan implementation.

Political instability: Political instability and changes in government can disrupt the implementation
of development plans by altering funding priorities, policies, and objectives.

Inadequate funding: Development plans require significant financial resources to implement, and a
lack of funding can hinder progress and limit the scope of projects.

Poor governance: Development plan implementation is undermined by poor governance and

corruption which hinders delivery of services, impending transparency and accountability and
reducing public trust in government.

Limited technical capacity: Limited technical capacity and expertise hinders the implementation of
development plans. It limits the ability of government agencies and other organizations to design and
execute projects effectively.

Environmental and social concerns: Development plans sometimes have unintended negative
consequences on the environment and social well-being of communities. Careful consideration and
mitigation of such concerns are essential to ensure sustainable and equitable development.

Resistance to change: Resistance to change from various stakeholders such as local communities,
interest groups, or government officials can impede implementation of development plans by
creating roadblocks or delays in implementation.
 GROUP 8 MEMBERS

1. LEON OMINI HDB222-0713/2020

2. DAVID KABITY HDB222-0450/2020
3. ISAAC GICHUKI HDB222-0464/2020
4. FILET NJERI HDB222-0691/2020
5. MANASSEH KIARIE HDB222-0408/2020
6. ANTHONY MWANGI HDB222 -0414/2020