Government Budget Cycle refers to the timeline or process through which government creates, approves, implements and evaluates its budget. This cycle includes various stages, such as preparation, authorization, execution, and audit. The budget cycle often aligns with the fiscal year of the country, providing a systematic and periodic opportunity for the government to plan and review its financial activities.
During the budget preparation stage, the government entities propose their expected revenue and expenditure for the coming year. Following this, the legislative body scrutinizes, amends and authorizes the proposed budget. The executive then executes the authorized budget during the execution phase. Finally, independent auditors review and evaluate the implementation of the budget during the audit stage. Government Budget Cycle, therefore, is a critical aspect of public financial management, ensuring accountability and transparency in the use of public resources.
