A budget is a financial plan for a defined period of time, usually one year. It can also include planned sales volumes and revenues, amounts of resources, costs and expenses, assets, liabilities and cash flows. Businesses, governments, families and other organizations use it to express strategic plans of activities or events in measurable terms. A budget is the sum of money allocated for a particular purpose and the summary of expected expenditures, along with proposals on how to meet them. It may include a budget surplus, provide money for future use, or a deficit in which expenditures exceed revenues.
A budget (derived from the old French word bougette, purse) is a quantified financial plan for an upcoming accounting period. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-off between two or more goods. In other words, a budget is an organizational plan established in monetary terms.