Budgetary Accounting

Budgetary accounting in government accounting is the process of tracking and managing the financial plan that outlines expected revenues and expenditures for a given period. It ensures that government entities allocate and spend public funds responsibly and within the limits set by adopted budgets. This process involves recording budgeted amounts, monitoring actual spending, and comparing it to the budget to maintain fiscal control. Essentially, it helps governments ensure they don’t overspend and that they can meet public service commitments while maintaining transparency and accountability to taxpayers.