A budget is a forecast or plan of an organization

Closely related budgeting terms, including:

• Budget
• Budget cycle
• Budget hierarchy
• Budgeting process
• Budget office
• Capital budget
• Capital expenditure (CAPEX)
• Cash budget

• Flexible budget
• incremental budget
Operating budget • Operating expenditure (OPEX)
• Static budget
• Variance analysis
• Zero base budgeting

The Budget Cycle/Budget Process

In the period of time between issuance of one budget and the next, budget-related decisions and plans are referred to as the budget cycle, or budgeting process.

Zero Based vs. Incremental Budgeting

Zero based budgeting is an approach to budgeting requiring that every expenditure be justified. In other words, each budget item starts with an assumed value of 0, with all changes above that having to be justified. This contrasts with the more usual practice of incremental budgeting, in which each budgeted item is started at last year's (or last term's) level, and the next period's level is planned as an increment (positive or negative change) to that level.