Budget A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows. Basics Elements of a Good Budget Income- The most basic element of all budgets is income. Fixed expenses- Fixed expenses are those expenses over which you have little control or are unchangeable. Flexible expenses- Flexible expenses refer to things that you want to spend money on but don’t necessarily need. Unplanned expenses and savings. Therefore, the following points are considered to be mandatory:- Revenue Objectives of the institution Expenditure