Budget allocation is when an organization allocates the maximum amount of funding they are willing to spend on an activity or program. Essentially, it is a limit that employees cannot exceed when charging expenses. Organizations will create a budget with consideration of the expenditures from the previous year

Budgeting Basics

  1. Track your expenses & income for one month.
  2. Create the categories that fit your life.
  3. Set some short-term & long-term financial goals.
  4. Cut certain areas to make those goals possible.
  5. Adjust your budget accordingly over time

In a school, budget helps the principal and staff to develop plans for future and staff to develop plans for future syllabus, instructional procedures, guidance services and student activities as it helps in allocating expended funds for labour, facilities and administration programmes, activities and projects


Budgeting provides a vehicle for translating educational goals and programs into financial resource plans. Thus, planning to meet student educational requirements and goals should be the basis for determining budgetary allocations. This link between instruction and financial planning is critical to effective budgeting.