In General

A budget is a list of all planned expenses and revenues.  It is a plan for saving and spending.   In other terms, a budget is an organizational plan stated in monetary terms.

In summary, the purpose of budgeting is to provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out and enable the actual financial operation of the business to be measured against the forecast.