What is the purpose of a budget in finance?

The purpose of a budget in finance is to plan and control spending, allocate resources effectively, and maximize financial efficiency. It allows individuals or organizations to set financial goals, develop a plan to achieve them, and track their progress. Budgeting also helps to identify areas where expenses can be reduced, savings can be made, and unnecessary expenses can be eliminated. Overall, budgeting helps to ensure that financial resources are used wisely and achieve desired outcomes.