Budget is a financial statement that coins down the expected revenue and expenditure of a

particular fiscal year. There are different types of Budget that may be discussed in the following
section:

• Partial Budget: Partial Budget aims to make small changes in the financial condition of a
corporation. The process of Partial Budgeting involves a comparison between the plus
and minus effects occurring due to the implementation of the proposed changes on the
net income.

Partial Budgets are in fact helpful while evaluating changes like:

 Improving the capital condition

 Expansion in the size of a company
 Searching for alternative companies, where changes need to be introduced
 Employment of a custom operation, and not a purchasing instrument
 Variations in the methods of productions

• Business Set Up Budget: A Business Set Up Budget deals with the financial expenses
required during the establishment of a commercial firm or enterprise. The expenses in
this case include the costing of the basic infrastructures. It is considered as one of the
fundamental means of introducing, improving and maintaining a business house. Hence,
it explicitly studies the inflow of cash in the form of income, and plans the expenses of the
concerned organization, based on the available funds in hand. Since a Business Set Up
Budget is only based on assessments of the expected income and expenditures, the
predictions and calculations are subject to variations. Hence arises the requirement of
reviewing the budgetary documents from time to time, to adjust the estimated facts and
figures with the actual ones.

• Government Budgets: are the summarized versions of the anticipated revenues and
expenses of a government. Formulated by the executive and passed by the legislature as
a legal document, Government Budgets focus on the distribution of wealth for economic
as well as political and social purposes. Some areas covered by the budget include:

 Exemption from personal income tax

 Superannuating schemes
 Estimating the status of the national exchequer, both during the last and coming
fiscal years
 Enhancing sectoral productivities

• Corporate Budgets: formulate the annual fiscal agendas, plans and programs of a
commercial organization. It works for putting forward the expected income and
expenditure figures of a company, for the next financial year.