Definition

Budget

A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms. It normally represents the primary method of communicating agreed-upon objectives throughout the organization. Once adopted, a budget becomes an important basis for evaluating performance. It promotes efficiency and serves as a deterrent to waste and inefficiency.


Budget is the organization’s plan for how it will raise and spend money during a given period of time.

Webster Dictionary Meaning

1. Budget
- A bag or sack with its contents; hence, a stock or store; an accumulation; as, a budget of inventions.
- The annual financial statement which the British chancellor of the exchequer makes in the House of Commons. It comprehends a general view of the finances of the country, with the proposed plan of taxation for the ensuing year. The term is sometimes applied to a similar statement in other countries.
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