A budget is a financial guide for the business or governmental agency. Without a budget the government agency does not know what revenues are available as well as will not have the necessary plan for allocating money and forecasting expenditures. Government budgeting applies the public budget cycle and consists of four stages. These stages include preparation and submission, approval, execution, audit and evaluation. Many businesses operate applying the public budget cycle. The public budget cycle allows the government agency to remain transparent when making financial decisions.
Every government agency has a responsibility to taxpayers to create a public budget and to adhere to that budget. A police agency is no different. Budgets are established in order to regulate how money is spent is the police department. A city