This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: "Budget" – news · newspapers · books · scholar · JSTOR (March 2017) (Learn how and when to remove this template message) This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia's guide to writing better articles for suggestions. (August 2013) (Learn how and when to remove this template message) .mw-parser-output .hidden-begin{box-sizing:border-box;width:100%;padding:5px;border:none;font-size:95%}.mw-parser-output .hidden-title{font-weight:bold;line-height:1.6;text-align:left}.mw-parser-output .hidden-content{text-align:left}You can help expand this article with text translated from the corresponding article in Spanish. (March 2019) Click [show] for important translation instructions. Machine translation, like DeepL or Google Translate, is a useful starting point for translations, but translators must revise errors as necessary and confirm that the translation is accurate, rather than simply copy-pasting machine-translated text into the English Wikipedia. Consider adding a topic to this template: there are already 5,140 articles in the main category, and specifying|topic= will aid in categorization. Do not translate text that appears unreliable or low-quality. If possible, verify the text with references provided in the foreign-language article. You must provide copyright attribution in the edit summary accompanying your translation by providing an interlanguage link to the source of your translation. A model attribution edit summary is Content in this edit is translated from the existing Spanish Wikipedia article at [[:es:Presupuesto]]; see its history for attribution. You should also add the template ((Translated|es|Presupuesto)) to the talk page. For more guidance, see Wikipedia:Translation. (Learn how and when to remove this template message)

A budget is a calculation plan, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmental impacts such as greenhouse gas emissions, other impacts, assets, liabilities and cash flows. Companies, governments, families, and other organizations use budgets to express strategic plans of activities in measurable terms.[1]

A budget expresses intended expenditures along with proposals for how to meet them with resources. A budget may express a surplus, providing resources for use at a future time, or a deficit in which expenditures exceed income or other resources.

Comme Sisyphe – Honoré Daumier (Brooklyn Museum)

Government

Further information: Government budget

The budget of a government is a summary or plan of the anticipated resources (often but not always from taxes) and expenditures of that government. There are three types of government budgets: the operating or current budget, the capital or investment budget, and the cash or cash flow budget.[2]

By country

United States

Main article: United States federal budget

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.[3]

India

Main article: Union budget of India

The budget is prepared by the Budget Division Department of Economic Affairs of the Ministry of Finance annually. The Finance Minister is the head of the budget making committee. The present Indian Finance minister is Nirmala Sitharaman. The Budget 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.[citation needed]

The first budget of India was submitted on 18 February 1860 by James Wilson. P C Mahalanobis is known as the father of Indian budget.

Iran

Main articles: Plan and Budget Organization and Military budget of Iran

2022–23 Iranian national budget is the latest one. Documents related to budget program are not released.[4]

Philippines

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 budgeting. The Department of Budget and Management (DBM) prepares the National Expenditure Program and forwards it to the Committee on Appropriations of the House of Representatives 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.[5]

Personal

Further information: Personal budget

A personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using, and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses. A third category (other than income and expenses) may be assets (such as property, investments, or other savings or value) representing a potential reserve for funds in case of budget shortfalls.

Corporate budget

Further information: Operating budget, Capital budgeting, and Production budget

See also: Financial forecast, Cash flow forecast, and Financial modeling § Accounting

The budget of a division, business, or corporation [6] [7] [1] is a financial forecast for the near-term future, aggregating the expected revenues and expenses of the various departments – operations, human resources, IT, etc. – and is thus a key element in integrated business planning, with measurable targets correspondingly devolved to departmental managers (and becoming KPIs[1]); budgets can then also refer to non-cash resources, such as staff or time.[1]

The budgeting process typically requires considerable effort, [6] often involving dozens of staff; final sign off resides with both the financial director and operations director. The budget is typically compiled on an annual basis, although this may be quarterly; the monitoring here is on an ongoing basis; see Business process re-engineering § Ongoing continuous improvement. (Criticism is sometimes directed at the nature of budgeting, and its impact on the organization. [8][9] )

Re monitoring: if the actual figures delivered come close to those budgeted, this suggests that managers understand their business and have been successful in "delivering". On the other hand, if the figures diverge, this sends an "out of control" signal; additionally, the share price could suffer where these figures have been communicated to analysts.

Professionals employed in this role are often designated "Budget Analyst",[10] a specialized financial analyst role. This usually sits within the company's financial management area in general, sometimes, specifically, in "FP&A" (Financial planning and analysis).

Types of budgets

References

  1. ^ a b c d "CIMA Official Terminology" (PDF). Archived from the original (PDF) on 2013-08-10.
  2. ^ 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 Archived 2012-11-05 at the Wayback Machine
  3. ^ "Constitutional Balanced Budget Amendment Poses Serious Risks". Center on Budget and Policy Priorities. Retrieved 2022-07-13.
  4. ^ https://www.tasnimnews.com/fa/news/1402/05/02/2930524/%D9%85%D8%A3%D9%85%D9%88%D8%B1%DB%8C%D8%AA-%D9%82%D8%A7%D9%84%DB%8C%D8%A8%D8%A7%D9%81-%D8%A8%D9%87-%DA%A9%D9%85%DB%8C%D8%B3%DB%8C%D9%88%D9%86-%D8%A8%D8%B1%D9%86%D8%A7%D9%85%D9%87-%D8%AF%D8%B1%D8%A8%D8%A7%D8%B1%D9%87-%D8%B1%D8%B3%DB%8C%D8%AF%DA%AF%DB%8C-%D8%A8%D9%87-%D8%A7%D9%86%D8%AA%D8%B4%D8%A7%D8%B1-%D8%A7%D8%B3%D9%86%D8%A7%D8%AF-%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%A8%D9%88%D8%AF%D8%AC%D9%87-%D8%B3%D8%A7%D9%84-1402/amp
  5. ^ "§015l. (CB) Line Item Veto". Budget Counsel. 2016-11-15. Retrieved 2022-07-13.
  6. ^ a b Jonas Elmerraji (2021). How Budgeting Works for Companies, investopedia.com
  7. ^ Edriaan Koening (N.D.) What is Corporate Budgeting?, chron.com
  8. ^ Loren Gary (2003). Why Budgeting Kills Your Company, Harvard Management Update, May 2003.
  9. ^ Michael Jensen (2001). Corporate Budgeting Is Broken, Let's Fix It, Harvard Business Review, pp. 94-101, November 2001.
  10. ^ Budget Analysts Archived 2020-11-09 at the Wayback Machine, Bureau of Labor Statistics
  11. ^ Мarynchak, Yevhеn (2019). THE FINANCIAL NEXUS BETWEEN AN INDIVIDUAL AND A STATE. PUBLIC FINANCE: LEGAL ASPECTS: Collective monograph. Riga: Baltija Publishing. p. 130. ISBN 9789934571824. Archived from the original on 2022-01-03. Retrieved 2022-01-09.