Abstract

Budget is an estimate of probable future income and expenditure, it is mechanism for deciding what will be spent and realized in future. Budget is the expression of management master operating of financing plan that is the formalized outline of company objectives and means of attaining them. It can be said that budget are formal statement of organization resource set aside for the purpose of carrying out specific function or activities over a given time period. Budgets are useful and form an important part of the planning and controlling process. Budget also indicates the expenditure revenue and profit planning for a given future time span.Budgets are usually stated in monetary term, this providing a common ground for a variety of organization activities.Management can use budget to provide a major area of control and planning.