Budget Cycle

The budget cycle is the process that governments and organizations use to plan their financial activities. It typically includes several key stages: preparation, where budgets are drafted based on projected needs; approval, where these budgets are reviewed and accepted by decision-makers; execution, where the budget is put into action and monitored; and evaluation, where outcomes are assessed to inform future budgets. This cycle ensures that funds are allocated efficiently, spending is tracked, and goals are met, promoting accountability and transparency in financial management.