Buxheti

Buxheti is the Albanian term for the budget, a financial plan that outlines expected revenues and planned expenditures over a specific period, usually a year. It serves as a framework for allocating resources, guiding spending decisions, and controlling both public and private finances. In households, a personal budget tracks income, expenses, savings, and debt to manage money and meet goals. In organizations, budgets align operations with strategy, forecast cash flow, and measure performance. At the government level, the national or regional budget authorizes revenue collection and the allocation of funds across ministries, programs, and capital projects.

The budgeting process typically includes preparation, approval by a legislative or governing body, execution by management, and monitoring, reporting, and auditing. Revisions and mid-year adjustments may occur to reflect changing conditions, new priorities, or unexpected events. Budgets are used to promote fiscal discipline, transparency, and accountability, while also providing a basis for evaluating policy outcomes and financial performance.

Core components of a budget include revenues (such as taxes, fees, grants, and transfers) and expenditures (operating costs, capital investments, and transfers). Financing arrangements, including borrowing and debt management, may be described, along with the resulting surplus or deficit. Budgets can be prepared for different horizons (annual, multi-year) and for various levels of government or management.

Common budgeting methods vary in structure and emphasis. Incremental budgeting adjusts existing allocations with small changes; zero-based budgeting requires justifying all expenditures from a zero base; performance budgeting links funding to anticipated outcomes; and program budgeting groups expenses by specific programs or objectives. Challenges include forecast uncertainty, political pressure, rigidity, and the need for timely reporting and oversight.