Economics and Rural Development, Volume 8, Number 2

Corporate Budgets and their Limitations: a Case Study of Meat and Poultry Producers

Marija Vaznoniene
Aleksandras Stulginskis University


At an enterprise, numerous functions are attributed to the budget and therefore for years now it has been the cornerstone of each and every organisation. However, in the last few years budgeting has attracted increasingly more criticism. Some scientists argue that budget-related problems arise because the budgets are used improperly, while others maintain that budgeting as such contains deficiencies.
Results of scientific research have been self-contradictory. Although budgeting is widely criticised by scientists, most enterprises do use it and are happy with it. Meanwhile in Lithuania only one of the key budgeting weaknesses has been analysed, i.e. inflexibility. Therefore, this study seeks to look into the prevalent types of budgets in Lithuanian organisations and what budget limitations the com-panies refer to. In order to achieve this objective, the employed methods include analysis and synthesis of scientific literature, induction, deduction, and comparison. The data received during the empirical research were processed using econometric methods.
The results of the study show that budgeting is practised only by a small proportion of organisations. Small businesses find budget-ing too expensive and not that important. Even though most organisations do not practice budgeting, all businesses believe that budget-ing is beneficial for the enterprise. In the opinion of the companies that establish their budgets, the budgeting limitations conform to those discussed in scientific literature.

Keyword(s): budget, budgeting, traditional budget


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Economics and Rural Development ISSN 1822-3346 / eISSN 2345-0347

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editors: Prof. Dr Vilija Alekneviciene, Dr Gunita Mazure.