What are the two types of government budget?
A budget can be of three types:
- Balanced budget: when government receipts are equal to the government expenditure.
- Deficit budget: when government expenditure exceeds government receipts. A deficit can be of 3 types: revenue, fiscal and primary deficit.
- Surplus: when government receipts exceed expenditure.
What does budget difference mean?
budget variance
A budget variance is the difference between the budgeted or baseline amount of expense or revenue, and the actual amount. The result is actual revenues that may vary substantially from expectations.
What are the two main causes of variances between budgeted and actual figures?
There are three primary causes of budget variance: errors, changing business conditions, and unmet expectations.
What is a high level budget?
Significance. A top-level budget is the most broad version of a company’s spending plan. It relies on top managers or business owners having deep understanding of the costs and relative importance of each piece of the business.
What is called a balanced budget?
A balanced budget is a situation in financial planning or the budgeting process where total expected revenues are equal to total planned spending. This term is most frequently applied to public sector (government) budgeting.
Which budget is used in India?
The Union Budget of India, also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India.
What is a good budget?
We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment. We like the simplicity of this plan.
What is the difference between budget and actual?
Of course, a budget is only an estimate of revenues and expenditures; actuals are the recorded revenues and expenditures at a given point in time. Your budget is only an approximation of what the future holds; a little variance is to be expected.
What happens when the actual results are more than the budget?
When revenue is higher than the budget or the actual expenses are less than the budget, this is considered a favorable variance. Unfavorable variances refer to instances when costs are higher than your budget estimated they would be.