Budget

Introduction A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It is also 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. But now-a-days a budget is something more than an estimate of revenue and expenditure. There is no alternative of budget for the implementation of development planning and conduct any type economic activities. The whole policy and programmers of the government is reflected in the budget.

Budget
Meaning: The word ‘Budget’ has been derived from a France word ‘bougette’ which means a purse. According to new oxford advanced learner’s dictionary, budget means the money that is available to a person or an organization and a plan of how it will be spent over a period of time- a monthly/ an annual/ a family budget.
Definition: In generally, budget is the process of calculating income and expenditure. A budget is a document that contains financial plans. It is a description of a financial plan. Normally a budget describes a period in the future not the past.

Plan for Saving Borrowing Spending

Figure: Budget

“Budget is a report and proposal that is the instrument by which all the process of financial administrations are correlated and coordinated.” * Willoughby
“Budget is the financial plan of government for a definite period.” * Taylor
“Budget is a document containing a preliminary approved plan of public revenue and expenditure.” * Rene Stourn
After above the discussion we can say that, budget provides a forecast of revenues and expenditures and enables the actual financial