digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

For the rental car company, see Budget Rent a Car. For the car insurance company Budget, see Budget Group of Companies.

A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.[1]

Brooklyn Museum - Comme Sisyphe - Honoré Daumier

Etymology[edit]

A budget (derived from old French word bougette, purse) is a quantified financial plan for a forthcoming accounting period.[2]

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.

Purpose[edit]

Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:

  • To control resources
  • To communicate plans to various responsibility center managers.
  • To motivate managers to strive to achieve budget goals.
  • To evaluate the performance of managers
  • To provide visibility into the company's performance
  • For accountability

In summary, the purpose of budgeting is tools:

  1. Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies, events and plans are carried out.
  2. Tools enable the actual financial operation of the business to be measured against the forecast.
  3. Lastly, tools establish the cost constraint for a project, program, or operation.

Business start-up budget[edit]

The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost. All other expenses are like labour factory overhead all freshmen expenses are also included into business budgeting.

Corporate budget[edit]

The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.

If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could sufferer. campaign planners incur two types of cost in ant campaign, the first is the cost of human resource necessary to plan and execute the campaign. the second type of expense that campaign planners incur is the hard cost of the campaign itself.

Event management budget[edit]

A budget is a fundamental tool for an event director to predict with a reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing tool.

There are two basic approaches or philosophies, when it comes to budgeting. One approach is telling you on mathematical models, and the other on people.

The first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables, inputs and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are typically held in some type of financial spreadsheet application.

The other school of thought holds that it’s not about models, it’s about people. No matter how sophisticated models can get, the best information comes from the people in the business. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets. While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other.

Government budget[edit]

For more details on this topic, see Government budget.

The budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget : the operating or current budget, the capital or investment budget, and the cash or cash flow budget.[3]

United States[edit]

The federal budget is prepared by the Office of Management and Budget, and submitted to Congress for consideration. Invariably, Congress makes many and substantial changes. Nearly all American states are required to have balanced budgets, but the federal government is allowed to run deficits.

India[edit]

Main article: Union budget of India

The budget is prepared by the Budget Division of Department of Economic Affairs of the Ministry of Finance annually. This includes supplementary excess grants and when a proclamation by the President as to failure of Constitutional machinery is in operation in relation to a State or a Union Territory, preparation of the Budget of such State. The railway budget is presented separately by the Ministry of Railways.

Philippines[edit]

The Philippine budget is considered the most complicated in the world, incorporating multiple approaches in one single budget system: line-item (budget execution), performance (budget accountability), and zero-based (budget preparation). The Department of Budget and Management prepares the National Expenditure Program and forwards it to the Committee on Appropriations of the House of Representative to come up with a General Appropriations Bill (GAB). The GAB will go through budget deliberations and voting; the same process occurs when the GAB is transmitted to the Philippine Senate.

After both houses of Congress approves the GAB, the President signs the bill into a General Appropriations Act (GAA); also, the President may opt to veto the GAB and have it returned to the legislative branch or leave the bill unsigned for 30 days and lapse into law. There are two types of budget bill veto: the line-item veto and the veto of the whole budget.

Personal or family budget[edit]

For more details on this topic, see Personal budget.

In a personal or family budget all sources of income (inflows) are identified and expenses (outflows) are planned with the intent of matching outflows to inflows (making ends meet). In consumer theory, the equation restricting an individual or household to spend no more than its total resources is often called the budget constraint.

Elements of a personal or family budget usually include, fixed expenses, monthly payments, insurance, entertainment, and savings.

There are many informational sites and software available for use in personal and family budgeting.

Budget types[edit]

  • Sales budget – an estimate of future sales, often broken down into both units and currency. It is used to create company sales goals.
  • 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. Created by product oriented companies.
  • Capital budget - used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing.
  • Cash flow/cash budget – a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.
  • Marketing budget – an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.
  • Project budget – a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project budget.
  • Revenue budget – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.
  • Expenditure budget – includes spending data items.

See also[edit]

References[edit]

  1. ^ "CIMA Official Terminilogy". 
  2. ^ Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 502. ISBN 0-13-063085-3. 
  3. ^ Cliche, P. (2012). “Budget,” in L. Côté and J.-F. Savard (eds.), Encyclopedic Dictionary of Public Administration, [online], http://www.dictionnaire.enap.ca/Dictionnaire/en/home.aspx

External links[edit]


Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Budget — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
1000000 videos foundNext > 

How to Budget

I know this isn't the sexiest of topics, but properly budgeting your money affects all aspects of your life. For the ultimate "guru" on money management, che...

Woodcraft on a Budget Part 12 Condor Kephart Feather Sticks

http://www.thepathfinderstore.com Dave Canterbury, David Canterbury, The Pathfinder School,Bush Craft ,Survival skills, Historical Lore, Primitive Skills, Archery, Hunting, Trapping, Fishing,...

Bank of America: How to Set Up a Budget

Setting up a budget is a great way to help keep your finances on track and plan for the future. Check out these easy ways to get started creating a better bu...

The 'Achche Din' budget? What India Inc thinks

Narendra Modi government's first Budget seems to have impressed the industry. Sumant Sinha, chairman and CEO of ReNew Wind Power described the Budget as fair...

Budget 2014 with Rajat Sharma ( Full Episode )

Budget 2014 with Rajat Sharma Full For more content go to http://www.indiatvnews.com/video/ Follow us on facebook at https://www.facebook.com/indiatvnews Fol...

How I Eat Healthy on a Low Budget! (Cheap & Clean)

I am living on a budget, just like most of you. Is it really possible to eat healthy? YES! Here are my top 20 tips on how I shop smart, what ingredients I buy to live and eat healthy. Healthy...

Tony Abbott discusses budget impact on Insiders

Prime Minister Tony Abbott tells Fran Kelly his Government did not release a tough budget "because we are political sadomasochists" but because Australia was...

Budget 2014 with TIMES NOW

It's the day that the new government unveils its economic agenda for the country and only TIMES NOW will keep you ahead on the budget today. With expert pane...

YS Jagan criticizes speaker Kodela over AP Assembly Budget sessions

Watch ABN Andhrajyothy, the no 1 Telugu news channel, a 24/7 LIVE news channel dedicated to live reports, exclusive interviews, breaking news, sports, weather, entertainment, business updates...

Budget 'based on lies', says Clive Palmer

Palmer United Party Leader Clive Palmer says the Government has used lies about debt to deliver an ideological budget that hits the poor. Read more here: htt...

1000000 videos foundNext > 

7924021 news items

MarketWatch

New York Times
Wed, 27 Aug 2014 09:18:55 -0700

These figures were calculated using estimates of Medicare outlays from the C.B.O.'s baseline reports, estimates of Medicare enrollment from the Medicare Trustees, historical G.D.P. price index rates from the Office of Management and Budget and G.D.P ...
 
The Daily Advertiser
Tue, 26 Aug 2014 17:33:45 -0700

The public will get a chance to look at the proposed budget for the Lafayette Parish School System beginning this week. After months of school board meetings, the document that will finally go out includes mostly recommendations from Superintendent Pat ...
 
New York Times
Wed, 27 Aug 2014 08:09:12 -0700

WASHINGTON — The federal government is expected to finish its fiscal year with a relatively modest budget deficit as the gap between revenue and spending continues a sharp decline, the Congressional Budget Office said Wednesday. The improvement in ...

Wall Street Journal (blog)

New York Times
Wed, 27 Aug 2014 10:40:49 -0700

“In the House and Senate, we own the budget,” he said, explaining that the initial blueprint on taxes and spending does not require the president's signature. “So what does that mean? That means that we can pass the spending bill. And I assure you that ...
 
Press Herald
Thu, 28 Aug 2014 00:52:30 -0700

The 2014 deficit projection issued Wednesday by the nonpartisan Congressional Budget Office is slightly higher than the agency forecast earlier this year, due in part to lower corporate tax collections. Corporate receipts are forecast to hit $315 ...
 
Bangor Daily News
Wed, 27 Aug 2014 13:15:00 -0700

MADAWASKA, Maine — School officials in Madawaska are hoping the third time's the charm when they present a new version of the 2014-15 school budget at town meeting Tuesday night. “We absolutely hope this is the one,” Ginette Albert, Madawaska ...

Lagniappe

Lagniappe
Wed, 27 Aug 2014 11:45:00 -0700

The fate of Mayor Sandy Stimpson's proposed $227 million fiscal year 2015 budget rests in the hands of the seven members of the Mobile City Council. The major issues to consider include incremental employee raises, an increase in healthcare costs, the ...
 
The News Journal
Wed, 27 Aug 2014 19:07:53 -0700

Urgent interstate bridge repair needs threaten to put a new squeeze on DelDOT's major project budget, already crunched by General Assembly rejection of a gas tax hike and borrowing plan earlier this year, Transportation Secretary Shailen Bhatt said ...
Loading

Oops, we seem to be having trouble contacting Twitter

Talk About Budget

You can talk about Budget with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!