Question

Define 'Budget'. Discuss the main characteristics of Budget with reference to NGO functioning.

28 Jan 2026
Answer :
Word Count : 935
A budget can be defined as a systematic and comprehensive financial plan that estimates income and expenditure for a specific period of time in order to achieve predetermined objectives. It is a managerial tool that translates plans, policies, and programmes into monetary terms and provides a framework for the allocation, utilization, and control of financial resources. In the context of management functions, a budget serves as an essential instrument for planning, organizing, directing, coordinating, and controlling activities. For non-governmental organizations, which operate with limited resources and high accountability to donors, beneficiaries, and society, budgeting plays a critical role in ensuring transparency, efficiency, and sustainability of operations. One of the main characteristics of a budget in NGO functioning is that it is goal-oriented. NGOs are established to achieve specific social, developmental, or humanitarian objectives rather than profit maximization. Therefore, their budgets are prepared with a clear linkage to organizational mission, vision, and programme goals. Each budgeted ___ __________ ______ ____ ____ _________ ________.
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