An estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person, family, group of people, business, government, country, multinational organization or just about anything else that makes and spends money. A budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another.


A surplus budget means profits are anticipated, while a balanced budget means that revenues are expected to equal expenses. A deficit budget means expenses will exceed revenues. Budgets are usually compiled and re-evaluated on a periodic basis. Adjustments are made to budgets based on the goals of the budgeting organization. In some cases, budget makers are happy to operate at a deficit, while in other cases, operating at a deficit is seen as financially irresponsible.


  1. Performance Budget

    A budget that reflects the input of resources and the output of services for ...
  2. Revenue Deficit

    When the net amount received (revenues less expenditures) falls short of the ...
  3. Small And Midsize Enterprises - ...

    A business that maintains revenues or a number of employees below a certain ...
  4. Man-Year

    A method of describing the amount of work done by an individual throughout the ...
  5. Static Budget

    A type of budget that incorporates anticipated values about inputs and outputs ...
  6. Capital Budgeting

    The process in which a business determines whether projects such as building ...
  7. Zero-Based Budgeting - ZBB

    A method of budgeting in which all expenses must be justified for each new period. ...
  8. Cash Budget

    An estimation of the cash inflows and outflows for a business or individual ...
  9. Revenue

    The amount of money that a company actually receives during a specific period, ...
  10. Chasing Nickels Around Dollar Bills

    A slang term describing what a company's management does when it decides to ...
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