Noun

budget (plural budgets)

1. (obsolete) A wallet, purse or bag.
   • 1590, Edmund Spenser, The Faerie Queene, III.x:

     With that out of his bouget forth he drew / Great store of treasure, therewith him to tempt [...].

2. The amount of money or resources earmarked for a particular institution, activity or time-frame.
3. An itemized summary of intended expenditure; usually coupled with expected revenue.

Derived terms

• budgetary
• budgeteer
• budgeter
• high-budget
• low-budget
• Dutch: budget
• German: Budget
• French: budget
• Italian: budget

A budget (from old French bougette, purse) is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

In summary, the purpose of budgeting is to:

1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out.
2. Enable the actual financial operation of the business to be measured against the forecast.

Business start-up budget

The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost. All other expenses are like labour factory overhead all freshmen expenses are also included into business budgeting