 A budget Is an estimation of revenue and expense over a specified future

period of time and is usually compiled and re evaluated on a periodic basis

 Is a spending plan based on income and expenses .in other word it is
an estimate of how much money you will make and spend over a
certain period of time ,such a month or year
 Importance of budget
 Gives you control over your money
 It helps you focus on your financial goals
 Makes it easier to stay aware of your saving and debit
 The budget process is the process through which government incomes and
expenditures are determined and allocated this process is usually divided
into four,.(federal regional and woreda government )
1. Budget preparation
2. Budget approval
3. Budget implementation
4. Budget control
 There are three types of budget
ii. surplus budget :-refers to a situation that has revenue higher than
expenditure.
iii. balanced budget:-is a budget in which revenue are equal to
expenditures .
iiii. Deficit budget:-occoures when money going out(spending )exceeds
money coming in (revenue)during a difined period.