CORPORATE BUDGETING: RELEVANCE FOR THE COMPETITIVENESS OF SERBIAN ENTERPRISES
CORPORATE BUDGETING: RELEVANCE FOR THE COMPETITIVENESS OF SERBIAN ENTERPRISES

Summary/Abstract: The traditional concept of corporate budgeting is subjected to serious critics by academic public and practioners during the last two decades. A hypothesis is emphasized in the paper that corporate budgeting, despite critics, can be improved into an useful tool for increasing the competitiveness of Serbian economy. The object of explaination are three questions: (1) turning to the contemorary theory and practise of corporate budgeting; (2) the causes of the uncompetitiveness of Serbian economy, with an emphasis on the place and role of corporate budgeting in the wider context of management quality and (3) some limitations to corporate budgeting implementation in Serbian economy. The method of analysis and comparative method are used in the paper. The main conclusion is that Activity Based Budgeting should become a genuin alternative to the traditional process of corporate budgeting in near future. Rolling Forecast and EnterpriseRisk Budgeting can be very useful, additional, tools for measuring the perfomances of enterprises and protection from risk and uncertainty. Such the „package“ of budgeting concepts could improve significantly the quality of (corporate) management, and also the competitiveness of Serbian economy. The contribution of this paper consists in the evaluation of the theoretical validity of contemporary views on corporate budgeting and in underlying its relevance for resolving the problems of the uncompetitiveness of Serbian economy.

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