Budget Preparation and Approval Processes

Description: The budgeting process for most defence enterprises is tied to the overall budgeting system of the government. Typically the budgeting process begins six months before the start of the financial year, while some may take an entire fiscal year to complete. Most organizations set budgets and undertake variance analysis on a regular (e.g. monthly) basis. Starting from the initial planning stage, the organization goes through a series of stages to finally implement the budget. Common processes include communication within executive management, establishing objectives and targets, developing a detailed budget, compilation and revision of budget model, budget review and approval.