The budget requisition process ties directly to the finances of an organization. The notion of a budget requisition arises from the idea of a general requisition, which applies to a number of situations. Budget requisition constitutes a unique form of apportioning funds because it works from the bottom up, rather than the top down. Learning about budget requisition begins with the nature of the term, but also includes an examination of its uses and particulars.
Requisition constitutes an official request or demand. These demands or requests range from requiring an individual to perform a particular action to demanding the use of large quantities of supplies. A military force, for instance, may requisition food, supplies and civilian vehicles in times of war provided the laws of a nation or municipality permit such an action. Generally, a requisition entails a request or demand for something already approved but not automatically granted. In times of war or emergency, for instance, a military may use civilian vehicles or take supplies upon requisition, but civilians do not automatically hand their vehicles over to the military when war breaks out.
A budget requisition constitutes a formal request for funding. During the budget requisition process, an organization or division within an organization requests funding from a higher authority. This constitutes a requisition because the organization or division requesting funding definitely receives funding; only the amount of funding is in question. A budget requisition differs slightly from other requisitions in that many forms of requisition, such as military requisition, come from a position of power, while during budget requisition, the party requesting funding holds little power in its relationship with the owner to funds in question.
When Budget Requisition Occurs
Budget requisition rarely occurs in business. Rather, businesses apportion funds based on the decisions of the leaders of the corporation. Budget requisitions occur in government operations and in public schools. Within each, various types of requisition exist. A school, for instance, maintains a certain budget for student organizations. All organizations receive money from this budget, making funding pre-approved. However, the amount of funding depends upon various circumstances, meaning organizations must make a formal budget requisition outlining its needs. The same applies for various other organizations within a school. In governments, military branches and organizations like the CIA vie for a limited budget appropriation. Each must submit requisitions to receive funding for special projects.
More on Budget Requisition
Budget requisition applies to a number of funding types. Organizations can request funding for specific events, to bolster an annual or semi-annual budget or for specific projects. In some business situations, small amounts of funding exist for emergency use or small expenditures. Organizations allow for the requisition of petty cash, for instance, for the purchase of small items or other expenses like gas for a company car. In government operations, budget requisition exists to ensure the proper use of public funds. A congressional panel or some other such authority reviews all requisitions and appropriates funds to those most worthy of public spending.