Budget

Operation

A budget can be indicative (an estimate is made, but the things can appear different), or, for the expenditure only, imperative (one avoids spending more, unless the budget is modified with the rise).

A budget is sincere if the posted forecasts are in conformity with the forecasts which it really makes (no expenditure was not " oubliée" , no income was over-estimated, etc), which does not exclude the error nor uncertainty inherent in a exercise from forecast.

The budget is useless without a follow-up making it possible to make sure that it is respected, and without correct measurements if the budgetary execution deviates some. These measurements can carry on the budget itself (one grants the budget to the noted execution), on the operation of the economic agent (one grants the execution to the budget), or possibly, even if that concerns the embezzlement, on the countable recording (one posts an expenditure or a receipt on a article budgetary different from what would have, which changes the distribution without modifying the total).

This budgetary follow-up, purely countable, has nothing to do with the Contrôle of management, which sticks him to identify the disorders in the organization, that they have or not a countable translation; nevertheless, the incapacity of an operator to draw up a budget or to respect it can be indication of major problem to solve.

The budgetary services have a very variable importance according to the organizations and the circumstances (in particular if the structure earns or loses money). Their role can as well be that of a flexible scribe, a Cassandre, or a meddlesome critic with right of Veto on the least expenditure.

Examples

The Budget of the State gathers for one year the whole of the receipts and the expenditure of the State. In the same way, the Budget of the local government agencies relates to the local government agencies. Together, and with the budget of ODAC, they form the budget of the Public administrations ( to see Taxes and social security deduction).

When the receipts are not enough by covering the expenditure, the budget balance is negative and one speaks about Budget deficit, generally financed by the loan, and, in the contrary case, of Budget surplus; this deficit as this surplus are in a strict sense only forecasts, but as the budgetary services are frequently accustomed to modifying the budget after the execution in order to make them coincide, the same expressions are also used for to indicate the noted deficit or surplus.

The Household budget obeys the same principles: it is a description of the receipts and expenditure of the whole of the households.

One uses sometimes the expression in a restrictive way to speak about the expenditure of Consommation of the households. This budget then gives the structure of the expenditure of Consommation of the Ménages.

The companies and the institutions are also brought to draw up budgets within the framework of their Planification (Plan accountant).

The great projects, for example constructions of infrastructures calling upon many speakers for their execution, require them of course also very detailed budgets.

Etymology

Budget is one of the words to have crossed twice the English Channel. With the Middle Ages, the " bougette" the purse (" indicated; carry monnaie") who hung with the belt. This term was taken again by the English who transformed it into " budget" , which was then taken again by the French during the revolution, about year VII.

Simple: Budget

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