Budget Process Law and Legal Definition

A budget process refers to the process by which governments create and approve a budget. It involves four phases. The first demands policy planning and resource analysis and includes revenue estimation. In second phase policy is formulated. It includes the negotiation and planning of the budget formation. The third phase is policy execution which follows budget adoption, budget execution, the implementation, and revision of budgeted policy. In the last phase of budget process the entire process and system is audited and evaluated.