Budget process

A budget process refers to the process by which governments create and approve a budget, which is as follows:

• The Financial Service Department prepares worksheets to assist the department head in preparation of department budget estimates
• The Administrator calls a meeting of managers and they present and discuss plans for the following year’s projected level of activity.
• The managers can work with the Financial Services, or work alone to prepare an estimate for the departments coming year.
• The completed budgets are presented by the managers to their Executive Officers for review and approval.
• Justification of the budget request may be required in writing. In most cases, the manager talks with their administrative officers about budget requirements. Adjustments to the budget submission may be required as a result of this phase in the process.

Budgeting is the setting of expenditure levels for each of an organization’s functions. It is the estimation and allocation of available capital used to achieve the designated targets of a firm.