A budget is a spending plan based on income and expenses. In other words, it’s an estimate of how much money you’ll make and spend over a certain period of time, such as a month or year. (Or, if you’re accounting for the incoming and outgoing money of everyone in your household, that’s a family budget.)
A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
What are the classification of budget?
There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based.
What does a budget contains?What is called government budget?
A government budget is a document prepared by the government and/or other political entity presenting its anticipated tax revenues (Inheritance tax, income tax, corporation tax, import taxes) and proposed spending/expenditure (Healthcare, Education, Defence, Roads, State Benefit) for the coming financial year.
What is a strategic budget?
What is Strategic Budgeting? Strategic budgeting is the process of creating a long-range budget that spans a period of more than one year. The intent behind this type of budgeting is to develop a plan that supports a long-range vision for the future position of an entity.
What comes first plan or budget?
So by design, the plan comes first. The very first budget for an organization is typically a “zero-based budget” (ZBB), in which each cost is justified against a specific goal. Preparation of a true ZBB is more complex and time-consuming than cost-based budgeting, so it may not be feasible to perform every year.
What does a budget contains?What are the duties of budget officer?
Supervises a clerical staff engaged in maintaining accounts of budgeted allotments, processing purchasing requisitions, invoices and other fiscal documents, maintaining records, and typing and assembling the budget; prepares a variety of periodic and special reports showing the status of budgetary allotments and …
Who prepares budget?
The Budget division of the department of economic affairs (DEA) in the finance ministry is the nodal body responsible for producing the budget.
Which country has biggest budget?
Rank
1
Country
United States
Budget (PPP)
9,818,534
GDP (PPP)
20,807,269
Govt. Expenditure as %GDP
47.2
Learn about budget in this video:
What is a zero based budgeting process?
What is zero-based budgeting? Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from scratch every time (i.e., starting from “zero”), versus starting with the previous period’s budget and adjusting it as needed.
How is budget prepared?
The budget has four stages viz., (1) estimates of expenditures and revenues, (2) first estimate of deficit, (3) narrowing of deficit and (4) presentation and approval of budget. The process begins with various ministries providing initial estimates of plan and non-plan expenditures.
Who approves a budget?
The annual budget resolution is an agreement between the House and Senate on a budget plan for the upcoming fiscal year and at least the following four fiscal years.
