A budget is he calculation that is made in advance of both the income and expenses of a company, a public entity, a state, or simply the family economy and whose mission is to determine broadly the level of expenditures that can be made, precisely taking into account income (wages, rents, etc.) and expenses (payment of goods and services, cancellation of debts, among others) for that personal or business finances are not destabilized and end up in bankruptcy because you spent more than you entered.
Advance calculation that a person or company makes to determine the level of expenses that they may have based on their income
Budgets allow that in the face of an unfavorable circumstance or situation in business or personal savings, to avoid making commitments with which later cannot be effectively fulfilled, the budget tries to avoid uncontrolled finances and if they are respected they are of enormous help in this sense.
“The national budget contemplates for this year the expenses for the payment of the foreign debt.”
In some way, the budget could be equated as a plan in economic terms that has the mission of meeting goals expressed in values and in financial terms and according to specific stipulated conditions.
Thanks to this instrument, companies, public institutions, or individuals, among others, will develop their plans, their activities, establish their priorities and evaluate the objectives they intend to achieve within a year.
Deficit: expenses exceed income
It should be noted that many times on this path you can incur what is known as deficit, when expenditures exceed income, or on the contrary, reaching a surplus, which is when income is imposed over expenses.
There are various kinds of budgets, such as those for production, which are those that will inform about the materials to be purchased, that is, a purchase estimate; on the other hand, the financial one, shows the entry and exit of funds; and at the request of a state organization, an annual budget is set with various items that are assigned to the various areas of the state, such as security, health, education and the rest of the public administration.
Written document detailing the costs of a repair
At the behest of commerce, the word budget designates that written document in which the costs that an arrangement or service to be performed will entail are explained.
Once it is delivered to the client and he is aware of the cost stipulated there, the company or professional must strictly respect it.
When an electronic device or appliance breaks, to name the most common and common, they are usually taken to a technical service to check the damage, and if possible fix it.
In the latter case, before the technician proceeds to repair it, it is necessary to know the cost of that repair, then the client will request a quote to be able to know for sure how much the repair will cost and if it is convenient to do it based on said cost.
Many times it happens that the spare parts to be repaired are imported, a fact that makes them more expensive, and then it ends up being cheaper to buy a new one.
On the other hand, the word budget also designates that amount of money that is available to carry out a certain activity, make a purchase, or commercial operation.
“My budget is $ 1,500 to buy the living room set, I do not have more, I hope you accept my offer.”
Assume something without having a solid foundation
On the other hand, the word is also used as a synonym for presupposing, which is to take something for granted or known without sufficient grounds or motives.
And the other use of the concept designates a hypothesis or assumption that one has about some question, an event.
“You cannot rely on such negative budgets, we have to have confidence that the business will finally close.”