Budget - is a estimation of revenue and expenses so that we would be able to save and be

able to divide the money that we have in our daily activities or in our monthly bills.

Government Budget - is a document prepared by the government and/or other political

entity presenting it's anticipated tax revenues (taxes) and proposed spending/expenditure
(for public purpose) for the coming financial year.

*And so that they would be able to know what are the revenues, expenditures and even the
projects of the government over the years on the different era for different baranggay or
municipalities.

Objectives of Government Budget

● Reallocation of Resources
● Reducing inequalities in income and health
● Economic stability
● Management of Public Enterprise

The Budget Cycle

Budget preparation - where they estimates of expenditure and revenues.

Budget Legislation - the formulation of GAA or the Bill for the budget.

Budget Execution - is the process by which the financial resources made available to an
agency are directed and controlled toward achieving the purposes and objects for which
budgets were approved.

Budget Accountability - the act of requirement to record the reasoning behind or decisions
when preparing a budget.

Components of Budget

Revenue Budget - are forecast of a company's sales revenues and expenditures, including
capital-related expenditures. The components of revenue budget are the number of units
sold, sales revenue, capital expenses and operational expenses.

Capital Budget - is the process in which a business determines whether projects such as
building a new plant or investing in a long-term venture are worth pursuing. Oftentimes, a
prospective project's lifetime cash inflows and outflows are assessed in order to determine
whether the returns generated meet a sufficient target benchmark. Also known as
"investment appraisal."