A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.
A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.
In summary, the purpose of budgeting is to:
- Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out.
- Enable the actual financial operation of the business to be measured against the forecast.
- Establish the cost constraint for a project, program, or operation.
Other articles related to "budget":
... The Congressional Budget and Impoundment Control Act of 1974 (Pub.L ... federal law that governs the role of the Congress in the United States budget process ...
... The budget deficit of the MTA is a growing crisis for the organization as well as New York city and state residents and legislature ... in debt and it also suffers from a $900 million gap in its operating budget for 2011 ...
... Sales budget – an estimate of future sales, often broken down into both units and dollars ... Production budget – an estimate of the number of units that must be manufactured to meet the sales goals ... The production budget also estimates the various costs involved with manufacturing those units, including labor and material ...
... King supports the principle of the No Budget, No Pay Act, to prevent members of Congress from being paid until a budget is passed, but would seek a requirement that any passed budget "works ...
... In the UK, the Chancellor of the Exchequer delivers an annual Budget speech on Budget Day, outlining changes in spending, as well as tax and duty ... For example, changes to the law as a result of Gordon Brown's 2004 Budget form the Finance Act 2004 ...
Famous quotes containing the word budget:
“We might come closer to balancing the Budget if all of us lived closer to the Commandments and the Golden Rule.”
—Ronald Reagan (b. 1911)
“You can fool all the people all the time if the advertising is right and the budget is big enough.”
—Joseph E. Levine (b. 1905)
“The United States is the only great nation whose government is operated without a budget. The fact is to be the more striking when it is considered that budgets and budget procedures are the outgrowth of democratic doctrines and have an important part in developing the modern constitutional rights.... The constitutional purpose of a budget is to make government responsive to public opinion and responsible for its acts.”
—William Howard Taft (18571930)