1. “Budget is an estimate of future needs arranged according to an orderly basis, covering some or all of the activities of an enterprise for definite period of time.
-- George R. Terry
2. “A Budget is a comprehensive and co-ordinated plan, expressed in financial terms, for the operations and resources of an enterprise for some specific period in the future”.
--James
3. “A Budget is a pre-determined statement of management policy during a given period which provides a standard for comparison with the results actually achieved”.
--Brown and Howard
4. “A financial and /or quantitative statement, prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of a given objective”.
--ICMA,
Objectives of a Budget:
1. It directs the attention of all concerned to the attainment of a common goal.
2. It leads to the disclosure of organizational weakness. The budgets are compared with actual performance; and variances, if any, are investigated. This step helps in taking corrective and remedial measures.
3. It aims at careful control over the performance and cost of every function.
4. it Contributes to co-ordinated efforts of all departments in order to achieve an integrated goal. Budgets grow from bottom and are controlled from top-level.
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