An expenditure budget indicates how much is expected to be spent.
The document that collects the estimates of the entry and exit of monetary resources for a certain period is called the budget . Thanks to this document, it is possible to calculate and record in a record how much money is required to develop an action or materialize a project.
Expenditures imply the departure of something. The most frequent use of the term appears in accounting to name and quantify the money that leaves the coffers of an entity, as opposed to the money that comes in (income).
What is an expenditure budget
The notion of expenditure budget is used in Mexico to name the instrument that indicates what amount of public money will be spent, also detailing how and in what sectors.
The expenditure budget is proposed by the President of Mexico and sent to the Chamber of Deputies for consideration and subsequent approval. The resources contemplated in this budget come from the different federations that are part of the Mexican State , which is why it is usually referred to as the Federation's expenditure budget.
In the expenditure budget, resources are distributed in four large areas : general branches, branches of autonomous powers and bodies, branches of centralized public administration and parastatal entities.
Expenditure budgets are used at the State level and in the private sector.
The example of 2013
The 2013 expenditure budget , for example, was approved by the Chamber of Deputies on December 20, 2012 in a vote that had 460 votes in favor, 10 votes against and 5 abstentions.
The Justice , Foreign Affairs , and Housing and Community Services sectors recorded the largest increases.
Expenditure budget in a company
No business can survive without budgeting; Every time you embark on the launch of a new product or advertising campaign, the opening of new branches or simply before making any decision that involves the investment of money, whether directly or indirectly, there is a budget appropriate to each case.
The expense budget of a company is one of the most important , since it is not possible to sustain a business without making expenses and, in the corporate sphere, these exist in a great variety. It is important to note that certain charges that are not collected in cash, such as depreciation (a decrease in the value of a product or service that may occur due to its age, a manufacturing defect, or as part of a promotion to attract new clients), are not considered part of the expenditure budget.
The positions that do fall into this category are the following:
* cash purchases : this includes both inputs and raw materials, as well as any other item that is necessary for the operation of the company and that must be acquired from third parties;
* accounts payable: any obligation that is known prior to the time of payment itself;
* rental of equipment and offices: it is common for companies not to own all the devices and buildings they use for their operation. This occurs both for small companies and those with an international presence;
* payment of salaries and wages: this is one of the fundamental points of almost every expenditure budget. With the exception of certain companies that consist of a single worker or other very specific cases in which they do not usually proceed with a high degree of formality, it is normal that a firm cannot function without the collaboration of certain employees, whether for an indefinite period or for projects;
* payment of taxes : another fundamental obligation for the correct and legal operation of companies, although also one of the most sought to evade.