ABSTRACT
This chapter shows how budget managers must behave as purchasers within their own environmental domain. It deals with the nature of financial management as controlled by the budget manager and how best this spending power can be directed as part of an overall strategy. Resources may be divided into six broad categories: expertise; materials; estate; equipment; finance; and systems. Finance is the most liquid resource and its relationship to the others is expressed in terms of capital and revenue expenditure. Although a change in spending direction may be established by political and economic circumstance, budget managers need also to be aware of the significant impact resources other than finance have on spending targets. A feasibility study is generally carried out where a change of use or a rationalisation is contemplated. Its need is generated usually by the supposition that some or all of the factors mentioned are present.
