budget

Dictionary: budg·et   (bŭj'ĭt)

1. 1. An itemized summary of estimated or intended expenditures for a given period along with proposals for financing them: submitted the annual budget to Congress.
   2. A systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period: A new car will not be part of our budget this year.
   3. The total sum of money allocated for a particular purpose or period of time: a project with an annual budget of five million dollars.
2. A stock or collection with definite limits: “his budget of general knowledge” (William Hazlitt).
3. Appalachian Mountains. A wallet or small pouch.

1. To plan in advance the expenditure of: needed help budgeting our income; budgeted my time wisely.
2. To enter or account for in a budget: forgot to budget the car payments.

To make or use a budget.

1. Of or relating to a budget: budget items approved by Congress.
2. Appropriate for a restricted budget; inexpensive: a budget car; budget meals.

[Middle English bouget, wallet, from Old French bougette, diminutive of bouge, leather bag, from Latin bulga, of Celtic origin.]

noun

A measurable whole: amount, body, bulk, corpus, quantity, quantum. See big/small/amount.

A budget is a spending plan used to allocate resources to accomplish an organization's objectives. This management tool coordinates anticipated expenditures in an effort to maximize resources. A budget is time-specific, and it must be flexible to respond to financial and programmatic changes. A budget, in effect, serves as a financial road map for an organization.

(SEE ALSO: Economics of Health; Planning for Public Health)

— GREGORY ERVIN

The practice of devising an annual programme for financial legislation has been attributed to William Lowndes, an official in the Treasury throughout the half-century after 1675. The term dates from the 1730s and is derived from the wallet or ‘bougette’ in which the chancellor of the Exchequer carried his proposals. In the 19th cent. the practice developed by which the annual budget comprised an assessment of Exchequer income and expenditures for the past financial year, together with estimates of expected spending needs in the forthcoming year and the fiscal steps required to provide for them. As the range of economic instruments at the disposal of the state has increased, the budget has lost some of its importance.

Quotes:

"Budgets are for cutting, that's why you set them." - Dr. Laurence Buckman

"The budget evolved from a management tool into an obstacle to management." - Frank C. Carlucci

"We didn't actually overspend our budget. The health Commission allocation simply fell short of our expenditure." - Keith Davis

"Some couples go over their budgets very carefully every month. Others just go over them." - Sally Poplin

This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (October 2008)

For the rental car company, see Budget Rent a Car.

For the insurance car company Budget, see Budget Group of Companies.

Budget (from French bougette, purse) generally refers to a list of all planned expenses and revenues. It is a plan for saving and spending.^[1] 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.

In summary, the purpose of budgeting is to:

1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out.
2. Enable the actual financial operation of the business to be measured against the forecast.

Contents 1 Business start-up budget 2 Corporate budget 3 Event management budget 4 Government budget 5 Personal or family budget 6 Budget types 7 See also 8 References 9 External links

Business start-up budget

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.

Corporate budget

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 one year (see Budget Year). While traditionally the Finance department compiles the company's budget, modern software 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 actuals diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer as a result.

Event management budget

A budget is a fundamental tool for an event director to predict with 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.

Government budget

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. The United States 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.

The United Kingdom budget is prepared by the Chancellor of the Exchequer, the second most important member of the government, and must be passed by Parliament. Parliament seldom makes changes to the budget.

Personal or family budget

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.

Budget types

Sales budget: The sales budget is an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals.

Production budget: Product oriented companies create a production budget which estimates 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.

Cash Flow/Cash budget: The cash flow budget is 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: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.

Project budget: The project budget is a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each.

Revenue budget: The 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: A budget type which include of spending data items.

See also

Budget crisis Budget Day Budget overrun Budget surplus Budget theory Canadian federal budget Chancellor of the Exchequer (UK budget) Deficit

Envelope System Personal finance Strategic misrepresentation United States budget process Union budget of India United Kingdom budget Variance analysis (accounting) Zero-based budgeting

References

1. ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 502. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4. 

External links

• Origin of the word

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)

Dansk (Danish)
n. - budget
v. tr. - klare på budgettet
v. intr. - budgettere
adj. - budget-

idioms:

• budget for    bugettere med

Nederlands (Dutch)
budget, begroting, begroten, goedkoop (aanbieding)

Français (French)
n. - (gén, Fin) budget, budget (Parlement), loi des finances
v. tr. - budgétiser, budgéter
v. intr. - dresser ou préparer un budget, (gén) inscrire qch à son budget, prévoir des frais de qch
adj. - (Écon, Fin) budgétaire, (présentation) du budget, (US, Comm) de crédit, pour petits budgets, économique

idioms:

• budget for    (Écon) incrire/porter au budget
• on a budget    disposer d'un budget

Deutsch (German)
n. - Etat, Haushaltsplan
v. - budgetieren, (im Etat) einplanen
adj. - nicht teuer, preiswert

idioms:

• budget for    etwas einplanen
• on a budget    haushalten od. wirtschaften müssen

Ελληνική (Greek)
n. - προϋπολογισμός
v. - προϋπολογίζω, καταρτίζω προϋπολογισμό

idioms:

• budget for    κάνω πρόβλεψη για (δαπάνη)

Italiano (Italian)
stimare, bilancio preventivo

idioms:

• budget for    stanziare

Português (Portuguese)
n. - orçamento (m)
v. - fazer orçamento

idioms:

• budget for    orçamento (m)

Русский (Russian)
ассигновать, бюджет

idioms:

• budget for    выделять средства на

Español (Spanish)
n. - presupuesto
v. tr. - presupuestar
v. intr. - planear el presupuesto
adj. - presupuestado

idioms:

• budget for    hacer un presupuesto para
• on a budget    dentro de un presupuesto

Svenska (Swedish)
n. - budget
v. - budgetera

中文（简体）(Chinese (Simplified))
预算, 编入预算, 安排, 编列预算, 低廉的, 收费公道的

idioms:

• budget for    把...编入预算

中文（繁體）(Chinese (Traditional))
n. - 預算
v. tr. - 編入預算, 安排
v. intr. - 編列預算
adj. - 低廉的, 收費公道的

idioms:

• budget for    把...編入預算

한국어 (Korean)
n. - 예산, 비용, 뭉치
v. tr. - ~의 예산을 세우다
v. intr. - 예산에 넣다
adj. - 예산의

idioms:

• budget for    예산을 짜다

日本語 (Japanese)
n. - 予算, 予算案, たくわえ, 安い, 経費
v. - 予算に計上する, 詳しい予定を立てる, 予算を組む

idioms:

• budget for    予算を立てる

العربيه (Arabic)
‏(الاسم) ميزانيه, تقدير الأيرادات و المصروفات (فعل) عمل ميزانيه, خصص مبالغ‏

עברית (Hebrew)
n. - ‮תקציב‬
v. tr. - ‮תיקצב, הכין תקציב‬
v. intr. - ‮תיקצב, הכין תקציב‬
adj. - ‮נוגע לתקציב, של תקציב‬

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