Budjetti

Budjetti is the Finnish term for a budget, a financial plan that estimates income and expenditures over a defined period, typically one year. It is used by households, businesses, and governments to allocate resources, guide decisions, and monitor performance.

In Finland, budjetti covers personal, corporate, and public budgets, including the national budget known as the valtion budjetti. The concept is applied across public administration, local government, and private sector accounting to organize finances, set priorities, and track financial results.

A budget usually contains expected revenues, planned expenditures, and the resulting surplus or deficit. Budgets can be categorized by purpose, such as operating budgets for day-to-day activities and capital budgets for investments in assets. Cash budgeting focuses on the timing of cash inflows and outflows, while rolling or flexible budgets adjust forecasts as conditions change.

The budgeting process typically includes setting objectives, estimating revenues and costs, compiling and reviewing the budget, obtaining approval from the appropriate authority, and monitoring performance through variance analysis that compares actual results with the plan. Common budgeting approaches include incremental budgeting, zero-based budgeting, and activity-based budgeting.

In governance, the national budget is a formal instrument of fiscal policy that outlines priorities, allocations across ministries, and expected macroeconomic impacts. Transparency and parliamentary oversight are often highlighted as key features of the Finnish budgeting framework. Potential limitations of budgets include uncertainty in revenues, changing economic conditions, and the risk of biased or optimistic forecasting, underscoring the need for regular revision and prudent governance.