Definition

Noun: - A financial plan that estimates the expected income and expenses for the day-to-day operations of an organization, department, or project over a specific period, typically one fiscal year. It is distinct from budgets for capital expenditures (like permanent improvements) or financial transactions (like investments or loans).

Usage

An operating budget is used to manage and control the routine costs and revenues necessary to keep an entity functioning. It is a fundamental tool for financial planning and accountability.

Examples

• Noun:
  • The manager presented the operating budget for the upcoming quarter, focusing on staffing and supply costs.
  • Approving the annual operating budget is the board's most critical responsibility.
  • A deficit in the operating budget forced the museum to reduce its public hours.

Advanced Usage

• "to stay within the operating budget": to ensure that actual spending does not exceed the planned expenses for operations.
  • Our primary goal this year is to stay within the operating budget.
• "to draft/propose an operating budget": to prepare or suggest a financial plan for operations.
  • Each department head must draft an operating budget for review.

Variants and Related Words

• Budget (n/v): The general term for a financial plan.
• Capital budget (n): A budget for long-term investments in assets like buildings or equipment, distinct from an operating budget.
• Operating expense/cost (n): An individual cost item within an operating budget, such as rent or utilities.

Synonyms

• Operating plan: A term sometimes used interchangeably with operating budget, emphasizing the planning aspect.
• Revenue and expense budget: A descriptive synonym highlighting the two main components.

Related Phrases

• Balance the operating budget: To ensure that planned operating income equals or exceeds planned operating expenses.
  • The city council worked hard to balance the operating budget without raising taxes.

Noun

1. a budget for current expenses as distinct from financial transactions or permanent improvements