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A Budget is basically a plan that states all your expenses and your income for a given period of time in future. This concept has evolved through economics. The basic purpose of a budget is to outline the savings as well as the spending of a nation or household.
The purpose of making a budget is to forecast the revenues and the expenses. It also helps in control as it gives the actual position of a business with respect to the forecast.
There are different types of Budgets used around the world, in every kind of forecasting activity. These are:
- Production Budget
- Cash Budget
- Revenue budget
- Expenditure Budget
- Project Budget
- Marketing Budget
- Sales Budget
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