The word "budget" refers to a plan that outlines expected income and expenses over a specific period of time. It helps individuals, businesses, and governments manage their finances by providing a clear framework for how money is allocated and spent. A budget ensures that resources are utilized efficiently and can aid in achieving financial goals.
The word "budget" comes from the Middle English word "bougette," which means a small purse. This, in turn, is derived from the Old French word "bougette," diminutive of "bouge," meaning "bag." The term evolved in the context of financial planning as it relates to the management of money and resources.