Fudget

DEFINITION of 'Fudget'

A falsified statement of income and expenses. A fudget or "fudget budget" fudges the numbers to present a more attractive picture of a budget than the financial situation that really exists. An example of a fudget would be one that presents balanced income and expenses, when expenses actually exceed income.

BREAKING DOWN 'Fudget'

A well-known scandal involving a fudget occurred in British Columbia in the late 1990s. Voters who learned that New Democratic Party politicians had falsified their provincial budgets, filed a lawsuit that sought to overturn the results of a recent election, because they claimed they would have voted differently given accurate budget information. The voters lost the lawsuit, but established a precedent for future lawsuits.