INTERIM BUDGET Meaning and
Definition
-
An interim budget refers to a temporary financial plan put in place to sustain the operations of an organization or government entity during a transitional period when a full budget has not yet been approved or finalized. It serves as a stopgap measure and is typically used when there is a delay in the budgetary process, such as during a change in leadership, political impasse, or significant external factors that prevent the timely approval of a regular budget.
The interim budget is usually created to ensure that necessary expenditures, such as salaries, essential services, and ongoing projects, can continue without disruption and to provide a level of financial stability until a more comprehensive budget is established. It is meant to cover the essential or routine expenses and does not typically include major or long-term funding decisions.
Typically, an interim budget is formulated based on the previous year's budget with necessary adjustments for inflation, changes in economic conditions, or specific requirements. However, it is expected to be a short-term solution and not considered a permanent financial plan.
The primary aim of an interim budget is to maintain a minimum level of financial stability and operational continuity until a regular budget is developed, debated, and approved. Once the full budget is ratified, the interim budget becomes invalid, and the financial operations of the organization or government are expected to follow the new budgetary framework.
Common Misspellings for INTERIM BUDGET
- unterim budget
- jnterim budget
- knterim budget
- onterim budget
- 9nterim budget
- 8nterim budget
- ibterim budget
- imterim budget
- ijterim budget
- ihterim budget
- inrerim budget
- inferim budget
- ingerim budget
- inyerim budget
- in6erim budget
- in5erim budget
- intwrim budget
- intsrim budget
- intdrim budget
- intrrim budget
Etymology of INTERIM BUDGET
The word "interim" comes from the Latin term "interim", which means "meanwhile" or "in the meantime". It is derived from the adverb "inter", meaning "among" or "between".
The term "budget" originated from the French word "bougette", which referred to a small bag or purse. It later evolved to represent a statement of planned expenses and revenues for a specific period.
Thus, the term "interim budget" combines these two words to describe a budget that is prepared and implemented for a temporary or interim period, usually to bridge the gap between two full budgets.
Infographic
Add the infographic to your website:
