It explains detailed and location of resources and pro production and taxation or other method for their understanding. While any plan need not be a budget, a budget has to be necessarily a plan. A budget is a plan and a budget document is a manifestation of the government actions in future. It is a broad plan of action intended to accomplish the policy objectives set by the government for the coming year. In technical view, a budget is a statement that includes a conjecture of revenues and expenditures for a period of time, generally a year. Therefore the term budgeting refers to the act of preparing budget (Bhattacharyya, 2011). When making a personal budget, an individual will normally assign the appropriate amount of money to fixed expenses such as rent, car payments, or utility bills, and then make an educated estimation for how much money they will spend in other categories, such as groceries, clothing, or entertainment.īatty explained that the entire process of preparing the budget is known as budgeting.
Budget facilitates people to vigilantly look at how much money they are taking in during a given period, and work out the best way to divide it among various categories. In other words, budget refers to a plan covering all the sectors of operations expressed in monetary or quantitative terms for a definite future period (Bhattacharyya, 2011).Ī budget can be made for a person, family, and group of people, business, government, country, multinational organization or for any thing that makes and spends money. It may include income, expenditure and employment of capital. Concept of budget: According to CIMA, London, budget is described as financial and quantitative statement prepared and approved prior to defined period of time, of the policy to be pursued during that period for the purpose of accomplishing a given objective.
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