Budget

A budget is a plan that shows how money will be received and spent during a specific period. It can be created by an individual, a family, a company, an association, or a government. The main purpose of a budget is to organize financial resources, set priorities, and make sure that spending does not exceed available income.

For example, a family budget may include money for housing, food, transportation, savings, and leisure activities. A government budget lists expected revenues, such as taxes, and planned expenses, such as education, healthcare, infrastructure, and public services.

Preparing a budget requires estimating future income and expenses, which may change depending on economic conditions. A balanced budget occurs when revenues and spending are equal, while a deficit appears when spending is higher than income.

Governments may borrow money to finance deficits, but repeated deficits can increase public debt. Budgets are therefore important tools for making decisions, managing resources, and explaining how money is allocated. They help individuals and organizations prepare for the future and respond to changing needs.