A budget process refers to the process by which governments create and approve a budget

Budget

A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...

, which is as follows:

• The Financial Service Department prepares worksheets to assist the department head in preparation of department budget estimates
• The Administrator calls a meeting of managers and they present and discuss plans for the following year’s projected level of activity.
• The managers can work with the Financial Services, or work alone to prepare an estimate for the departments coming year.
• The completed budgets are presented by the managers to their Executive Officers for review and approval.
• Justification of the budget request may be required in writing. In most cases, the manager talks with their administrative officers about budget requirements. Adjustments to the budget submission may be required as a result of this phase in the process.

Budgeting refers to the setting of the expenditure with respect to the organization’s core function which is responsible for the overall functionality of the firm. Budgeting is the setting and allocation of the capital which is then used in the proper way to achieve the set or designated targets of the firm. Budgeting needs to be very much focused and clearly prepared that cover all of the financial constraints in that sense that any of the investment that would be planned in the future will cover the financial targets of the firm, its viability should be in due course of the firm’s overall strategic financial plan, the routine and daily occurring expenses will have their proportionate allocation that if any investment will be in its way that will not hurt any of the scheduled existing expenses of the firm. Budgeting needs to be done in a proper and meaningful way that it covers all the financial targets of the company, these targets needs to be achieved so as to be called the successful budgeting. Financial budgeting is also referred as the investment appraisal that finalizes and clearly shows that the investment through which the firm will be going through must have fulfill all the financial targets.

Terminology

• Revenue Estimation performed in the executive branch by the finance director, clerk's office, budget director, manager, or a team.
• Budget Call issued to outline the presentation form, recommend certain goals.
• Budget Formulation reflecting on the past, set goals for the future and reconcile the difference.
• Budget Hearings can include departments, sections, the executive, and the public to discuss changes in the budget.
• Budget Adoption final approval by the legislative body.
• Budget Execution amending the budget as the fiscal year progresses.

Constitutional economics

Constitutional economics

Constitutional economics

Constitutional economics is a research program in economics and constitutionalism that has been described as extending beyond the definition of 'the economic analysis of constitutional law' in explaining the choice "of alternative sets of legal-institutional-constitutional rules that constrain the...

 is the study of the compatibility of economic and financial decisions within existing constitutional law frameworks, and such a framework includes government spending on the judiciary

Judiciary

The judiciary is the system of courts that interprets and applies the law in the name of the state. The judiciary also provides a mechanism for the resolution of disputes...

 which in many transitional and developing countries is completely controlled by the executive. It is useful to distinguish between the two methods of corruption

Political corruption

Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

 of the judiciary: corruption by the executive branch, in contrast to corruption by private actors. The standards of constitutional economics can be used during annual budget process, and if that budget planning is transparent then the rule of law may benefit. The availability of an effective court system, to be used by the civil society

Civil society

Civil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...

 in situations of unfair government spending and executive impoundment of previously authorized appropriations, is a key element for the success of the rule-of-law endeavor.

See also

• Budget
  Budget
  A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
  
  
• Economics
  Economics
  Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
  
  
• Budget theory
  Budget theory
  Budget theory is the academic study of political and social motivations behind government and civil society budgeting. Classic theorists in Public Budgeting include Henry Adams, William F. Willoughby, V. O. Key, Jr., and, more recently, Aaron Wildavsky. Notable recent theorists include Baumgartner...
  
  
• Political economy
  Political economy
  Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
  
  
• Constitutional economics
  Constitutional economics
  Constitutional economics is a research program in economics and constitutionalism that has been described as extending beyond the definition of 'the economic analysis of constitutional law' in explaining the choice "of alternative sets of legal-institutional-constitutional rules that constrain the...
  
  
• public budgeting
  Public budgeting
  Public Budgeting is a field of Public Administration and a discipline in the academic study thereof. Budgeting is characterized by its approaches, functions, formation, and type....
  
  
• budget deficit
• budget surplus
• budget crisis
  Budget crisis
  A budget crisis is an informal name for a situation in which the legislative and the executive in a presidential system deadlock and are unable to pass a budget. In presidential systems, the legislature has the power to pass a budget, but the executive often has a veto in which there are...
  
  
• Canadian federal budget
  Canadian federal budget
  In Canada, federal budgets are presented annually by the Government of Canada to identify planned government spending, expected government revenue, and forecast economic conditions for the upcoming year....
  
  
• Comprehensive income
  Comprehensive income
  Comprehensive income is a specific term used in companies' financial reporting from the company-whole point of view. Because that use excludes the effects of changing ownership interest, an economic measure of comprehensive income is necessary for financial analysis from the shareholders' point...
  
  
• Government Accountability Office investigations of the Department of Defense
  Government Accountability Office investigations of the Department of Defense
  Government Accountability Office investigations of the Department of Defense are typically audits in which the Government Accountability Office , the United States Congress’ investigative arm, studies how the Department of Defense spends taxpayer dollars...
  
  
• Government-owned corporation
  Government-owned corporation
  A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
  
  
• public administration
  Public administration
  Public Administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal.....
  
  
• public finance
  Public finance
  Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...
  
  
• United States budget process
  United States budget process
  The process of creating the budget for the United States government is known as the budget process. The framework used by Congress to formulate the budget was established by the Budget and Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, and by other budget...