What is Budget

A budget is a financial plan that outlines how an individual, household, business, or government will allocate its resources over a specific period. It typically involves:
  • Income:  The total amount of money coming in.
  • Expenses:  The total amount of money going out.
  • Surplus or Deficit:  The difference between income and expenses. 
Budgets can be used for a variety of purposes, such as:
  • Personal finance:  To manage personal income and expenses.
  • Business planning:  To forecast revenue and expenses, and to make investment decisions.
  • Government policy:  To allocate government spending and to manage the national debt.

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