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Economics vocabulary · Fiscal Policy and Public Finance

Budget

Meaning in economics, with examples

/ˈbʌdʒɪt/nounCore term

In economics, budget means: A government's plan of how much money it expects to collect and spend over the next year; the word also means the money available for a purpose.

In Turkish: bütçe, devlet bütçesi

How it is used

Governments present and propose a budget; parliaments debate, pass and approve it. The result is a budget deficit, a budget surplus or a balanced budget. In the UK the annual Budget, presented by the Chancellor, is often written with a capital B.

Example sentences

  1. The finance minister presented next year's budget to parliament on Monday.

  2. The budget includes extra funding for schools and hospitals.

Common collocations

  • present the budget
  • pass a budget
  • balanced budget
  • budget surplus
  • budget cuts
  • budget deficitThe gap that appears when a government spends more than it collects in taxes and other revenue during a year; it is usually covered by borrowing.
  • fiscal policyThe government's decisions about taxes and public spending, used to influence demand, growth, jobs and the state of the public finances.
  • government spendingMoney that the state spends on public services, investment, salaries and social payments such as pensions; a key tool of fiscal policy.
  • tax revenueThe money a government collects from taxes on income, profits, sales, property and other things during a given period.
  • public sectorThe part of the economy owned, funded or run by the state, including government departments, public schools and hospitals, and state-owned companies.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Fiscal Policy and Public Finance

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This page explains English vocabulary for learners. It is not financial advice.