Governmental Budgeting Process

The governmental budgeting process is the method through which a government plans its financial activities for a specific period, usually a year. It begins with estimating revenues (money the government expects to earn) and determining expenditures (how much it plans to spend). Various departments submit their budget requests based on priorities. These proposals are reviewed, revised, and consolidated into a draft budget by the government. This draft is presented to the legislative body, such as a parliament or council, for approval. Once approved, the budget guides government spending and resource allocation throughout the year.