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A budget is a plan you write to decide how to spend your money each month. A budget helps you ensure you have enough money each month. Without a budget, you may run out of cash before your next paycheck. The budget shows you how much money you make.

What are the three Types of Budgets?

There are three types of budgets: surplus, balanced, and deficit. The government budget is the financial document that includes revenues and expenditures throughout the year. The annual statement that estimates expenses and payments is called a budget.

What is the Budget Process?

What Is The Budget Process?

The budget preparation process typically begins in the fiscal year’s third quarter. The budget consists of four stages: (1) estimating expenditures and revenues, (2) estimating the first deficit, (3) narrowing the deficit, and (4) presenting and approving the budget.

Why is it Called a Budget?

The word budget results from the Old French bougette. The British Chancellor of the Exchequer presents his yearly financial statement, and he is said to “open” his budget, or receptacle of documents and accounts.

What is a Budget and its Types?

A government’s budget is a summary or plan of expected resources and expenditures of that government. There are three government budgets: the operating or current budget, the capital or asset budget, and the cash or cash flow budget.

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