whats the difference between a budget projection and an outcome (1 Viewer)

[arjiparji]

As the title states.
ty

 

[gnrlies]

As the title states.
ty

Well cast your mind back to the definition of a budget. It is essentially a forecast. In the context to fiscal policy its a forecast of revenues and expenditures for the upcoming year.

At the time of planning a budget, they have to make a prediction of what each component will be. for example they might estimate income tax based on projected wages growth. But remember, this is just a forecast, not an actual.

This is why everything contained within the budget is a projection. Its essentially just an educated guess.

The outcome usually refers to the difference between revenues and expenditures (i.e. the size of the surplus or deficit). There can be a projected outcome (i.e. what they think it will be at the time of planning) and then there will be the actual revised outcome (which is what it ended up being after the financial year has completed).

In a twist of words the term "outcome" may also be used to simply refer to those actual figures. I.e. x was projected, y was the outcome (in the same way as you might use the word outcome in other contexts).