Study On Budget Relaxation Of H Gas Company

The comprehensive budget management model has been adopted by many companies since it was proposed.However,with the increase in the application of comprehensive budget management in the company,there are also some drawbacks that are gradually exposed.Among them,the problem of budget slack is a relatively common problem,especially in the budget management of group companies,there are more or less problems with budget slack.Budget slack will affect the validity and rationality of company resource allocation,affect the authenticity of information transmission within the company,and even make the performance assessment system of companies lose proper incentive effect,which will seriously affect the survival and development of companies.Firstly,the thesis expounds the meaning of budget slack,and then theoretically analyzes the causes of budget slack based on principal-agent theory,contingency management theory,game theory and ratchet effect theory,and elaborates the theoretical reasons for the budget slack.On this basis,summarizing the adverse effects that budget slack may bring to companies,including reducing the efficiency of business activities,affecting the transmission of real information among various departments,etc.In the case study section,combined with the financial data of the H Gas Company in the past three years,the reason for the its budget slack was analyzed from the internal,external,and individual aspects.Studies have shown that the reasons for the budget slack in the company specifically include: emphasis on budget assessment by the group,information asymmetry,uncertainty in the external environment and incomplete budget preparation methods.At the end of the thesis,some suggestions are put forward for the control and governance of the budget slack in the company.Firstly,propose improvement proposals for the current system of budget management,and then the HU theory is introduced into the budgeting process.Finally,proposed suggestions on budget execution deficiencies.The deficiencies in the proposals were put forward to ensure that the budget slack in the H Gas Company can be controlled within a reasonable range,and ultimately promote the sustainable development of the company.