Question 3 Budgeting is the most effective tool for managing an organization's money, including Local Authorities. A budget therefore enables an Local Authorities to estimate the income and expenses and explains how an institution will finance the expenditure, for a set period of time - usually a year. As a student of Local Government Accounting, you are required to discuss the below listed types of Budgets in terms of Local Government management. Master Budget, Operational Budget, Cash Budget, Programmes Budget and Capital Budget (20 marks)