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Bloomberg
Dec 4
Comment
New York lawmakers’ plan this week to
reduce the state’s budget deficit relies too much on one-off
revenue and not enough on cutting spending that would help to
shrink gaps in future years, Comptroller Thomas DiNapoli said.
New York Times
Dec 4
Comment
For the first time since Mayor Richard M. Daley appointed him to the City Council seven years ago, Alderman Thomas Tunney voted against one of the mayor’s proposals.
OilVoice
Dec 4
Comment
The Mexican government has stated its intention to reduce the funds allocated to state owned Petróleos Mexicanos for development of the Chicontepec oil field by 63. The budgetary cut makes the future
Sydney Morning Herald
Dec 3
Comment
US Treasury Secretary Timothy Geithner has vowed to lower the double-digit US budget deficit to 3.0 per cent of economic output in the ``medium term'' to get the recession-wracked economy back on track.
Bloomberg
Dec 3
Comment
The impact of the national recession
upon New York City may not be as severe as local economists
predicted earlier this year, with job losses since Sept. 30,
2008, to total about 100,000 less than forecast, the city’s
Independent Budget Office...
Cloud Computing
Dec 2
Comment
Research and Markets (http://www.researchandmarkets.com/research/8099c8/australia_ict_budg)
has announced the addition of the "Australia
ICT Budget Review and Outlook: 2009-10 " report to their offering.
read more
The Economic Times
Dec 1
Comment
India could get an additional $120 million for agricultural development by 2012 but the Indian government needs to do a lot more to match up to measures undertaken by the developed countries says Kayano Nuwanze.
OilVoice
Dec 1
Comment
2010 CAPEX Budget Up 50 to 50 Million 2010 Budget Targets 4 6 Production Growth RAM Energy Resources Inc. reports that total 2009 production is expected to meet or exceed previous guidan
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more ▼WIKI ANALYSIS
WIKI ANALYSIS| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
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A budget is a spending plan - for the government, a company, a non-profit, or even an individual.
Purpose of having a budget
A budget allows you to put ideas down on paper in terms of the monetary value involved with a project. For businesses and various projects, it also provides a forecast into their financial performance going forward. This way, the actual and forecasted operations can be measured against each other.
Used properly, a budget can identify the amount of money that one would require at a certain point of time in the future. This is useful because allocation of capital eventually ends up having an impact on the direction of the project. Sometimes, realities of the budget force people to rethink plans drastically, even cull certain projects.
Kinds of Budgets
Budgets can be categorized based on their purpose:
- A Government Budget focuses on summarizing the intended revenues and expenditures of a government for a specific fiscal year. This would include their spending on public welfare, defense, goods and services, etc and the revenue of the government, which comes primarily through taxation.
- A Corporate Budget is compiled annually and is generally presented as the financial plan of the company. Accuracy in forecasting is a great indicator of how well the management knows the business. Correct predictions generally signify great management and control, whereas wild fluctuations between the forecast and actual budget make investors wary of the stock.
- Personal Budgets are also called family budgets since they compare the income and expenses for families or individuals. They are subjected to budget constraints that dictate that household spending cannot exceed its assets.
- Miscellaneous Budgets could include business start up budgets, non-profit budgets and other possible budgets for any project or an event.
Budgets can be classified by their methodology, that is used to come up with the data[1]:
- Incremental Budgets are those in which the figures are based on real values from previous year and adjusted for the inflationary increase. No estimation is required, since it requires only extrapolation from the values of the last year.
- Zero-based Budget starts from scratch as every detail is discussed and proposed. Informed estimates are made and no past values are used (in comparison, incremental budgets are based only on past values) This method is more detailed as each line and item gets examined, where any unjustified item would get eradicated.
Another popular way of classifying blogs is by the kinds of budgets used[2]:
- Operating Budget plans for current costs and future financing methods. This is the most commonly used method of managing revenue and expenses.
- Capital Budget is similar to an operating budget but details each and every expenditure, right down to purchasing needs of individuals or businesses.
References
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