Definition
Budgeting can be defined as the process of preparing a budget, which sets estimations for revenues and expenses for future periods. It is a mechanism for allocating resources to goals and objectives of an entity and is related to the strategic plan. The budget is the financial statement prepared in order to forecast the expenditures and revenues for the budgetary period and to be used by managers and policy makers in decision-making and accountability processes. The budget can refer to 1 year (annual budget) or more than 1 year (multiyear budget). In any case, the process of preparing the budget takes place during the months before the year it refers to so that it can be used by the beginning of the fiscal year.
Governmental budgets have their origin in the parliamentary systems (seventeenth century in UK and eighteenth century in France) in which the legislative power controls the...
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References
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Brusca, I., Labrador, M. (2016). Budgeting in the Public Sector. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2361-1
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DOI: https://doi.org/10.1007/978-3-319-31816-5_2361-1
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