A Comprehensive Study on Budgeting and Variance Analysis in Eastern Coalfields Limited

Budgeting and variance analysis are essential managerial accounting tools used for planning, controlling, and performance evaluation in organizations. Public sector enterprises, particularly in the coal mining industry, face significant challenges related to cost control, operational efficiency, and financial discipline. This research paper aims to study the budgeting system and variance analysis practices adopted by Eastern Coalfields Limited (ECL). The study evaluates how budgets are prepared, implemented, and controlled, and how variance analysis helps management in identifying deviations between planned and actual performance. The research is based on secondary data collected from published reports, journals, and prior studies. The findings indicate that budgeting and variance analysis play a crucial role in improving cost efficiency, accountability, and decision-making in ECL, though certain limitations exist due to external and operational constraints.