How budget is formulated?

Formulation

The responsibility for formulating the budget estimates rests on the executive.

Generally budget preparation starts in the month of September of the previous year.

General Budget contains estimated receipts and expenditure for one year usually. It has three sets of figures, such as

1. Actual figure of the previous year
2. Budget and Revised figure for the current year
3. Budget estimate for the upcoming year

For Example if it is the budget of 2020-21. The current year is 2019-20 and the previous year is 2018-19