Types of Budget

If you have opened the google and written the keyword "type of budget", you will find different types of budget. But we are explaining all in one place for increasing your knowledge.

1. As per Account Now

Account now is the top site which has come in google for explaining the type of budget. As per account now, Budgets have 3 main types.

  1. First type is the comprehensive budget. This budget is made for cutting the useless expenses. 
  2. Second type of budget is problem solving budget. In this budget, make a plan to spend our money on a product which have our basic need. Sometime, there are lots of alternative for spending the money. We have to select any or fix the proportion which is fix under problem solving budget. 
  3. Third budget is planning budget. It is long term budget for achieving your target. For example, you have to buy AC car whose cost is Rs. 8,00,000, for this, you have to fix the saving per money to achieve your target within 5 years.

Fool.com has explained 5 main types of budgets. This is in the second place of google search. As per fool.com, budget can be classify in five main categories. 

  1. First type is capital budget. In capital budget, capital expenditures are estimated which will be in the bought of capital assets like furniture, building, machine or vehicle. 
  2. Second type is operating budget. In this budget, revenue expenditures are estimated.
  3. Third type is cash budget. In cash budget, all cash receipts and payments are estimated for next year. This budget is helpful for reducing the shortage of cash for fulfilling working capital needs. 
  4. Fourth budget is the sale budget. This budget shows the estimated data of next one years sales in unit and value. 
  5. Fifth budget is the personnel budget. It estimates the cost of laborers for next one year which will paid in the form of salaries and wages. 

Chron has also explained five types of budgets and it has on the third position in Google search because it has given almost Fool.com except showing new type that is master budget, financial budget and static budget. Master budget is the budget of whole organisation. In this budget all activities of business is estimated and summary of cash, sales, expenses budgets are included in it. Financial budget is estimated fund flow statement. Static budget is the budget which does not change the estimated expenditures if sales changes.

Nothing is own in the slideshare. Slideshare is just social networking site. A person who is living in Ludhiana (punjab, India) has made the slide "Explain the different types of Budget and Uploaded in this Social Networking Site." Because, he has lowed to share it in any other website. So, we are sharing his presentation at here. 


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Education : Types of Budget
Types of Budget
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