Budget

A budget is a financial plan outlining expected revenues, costs, and cash flows for a future period.

Budgets support planning, control, performance evaluation, and decision-making, and they can be flexible or fixed depending on activity levels.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Budget** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.