What does an appropriated budget provide to a government?

An appropriated budget provides legal authority to spend. This is a crucial aspect of governmental financial management, as it ensures that public funds are allocated and utilized according to the law. When a budget is appropriated, it is formally passed by the legislative body, granting agencies the power to incur expenditures for specified purposes.

An appropriated budget delineates how much money can be spent, by whom, and for what purpose. This legal aspect promotes accountability and transparency, as it prevents government entities from spending funds without authorization. By establishing clear limits on spending, the appropriated budget helps to maintain fiscal discipline and ensures that public resources are managed effectively in line with the governmental objectives and policies outlined in the budget.

The options that do not align with the primary function of an appropriated budget include the authority to borrow funds, which is generally governed by separate legal and financial regulations; a forecast of future revenue, which is typically part of a broader financial planning process; and a guideline for tax rates, which are determined through a different legislative framework.