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What do you understand by the term "Budgeting Constraint"?

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Question added by Saeed Ur Rehman , Senior Manager Audit & Advisory , Afrasiab Tanveer & Co Chartered Accountants
Date Posted: 2016/08/31
felisters kessah
by felisters kessah , admin assistant , sunlar solar

budgeting constraint is a factor affecting the budgeting process, it can either be positive or negative

Ahadu Kifle
by Ahadu Kifle , HR Manager , Komari Beverage PLC

A budget constraint is an accounting identity that describes the consumption options available to an agent with a limited income (or wealth) to allocate among various goods.

It is important to understand that the budget constraint is an accounting identity, not a behavioral relationship.  An agent may well determine his behavior by considering his budget constraint, but his budget constraint is a given element of the problem he faces.

Muhammad Yaseen
by Muhammad Yaseen , Lead Planning Scheduling Engineer – Shutdown and Turnaround , Sadara Chemicals Company

Uncertain condition which fall on budget during planning and barring to estimate precisely during that instant of time.

Tomasz L
by Tomasz L , Reporting Specialist , Outworking

I agree with previous answers. I can only say 'boundary conditions' of the forecasting process

Jaweed Akber
by Jaweed Akber , Finance Manager , Dream Asas Real estate Investment Co.

A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices.

Ashraf Hamed
by Ashraf Hamed , Financial Manager , Wazni for Jewelry Manufacturing and Sales

The budgeting constraints of the individual or organisation is the possibility to have enough income covering up its expenditures. It could be positive or negative.

SHAHZAD Yaqoob
by SHAHZAD Yaqoob , SENIOR ACCOUNTANT , ABDULLAH H AL SHUWAYER

budget constraint For an individual or household, the condition that income equals expenditure (in a static model), or that income minus expenditure equals the value of increased asset holdings (in a dynamic model). For a country, the condition that the value of exports equals the value of imports or, if capital flows are permitted, that exports minus imports equals the net capital outflow. It is equivalent to income from production equaling expenditure on goods plus net acquisition of foreign assets. The curve, usually a straight line, representing either of these conditions.

Michael Mudzengi
by Michael Mudzengi , Group Accountant , Birmingham invest Proprties Ltd

A budgeting constraint is anything that affect your budgeting process.

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Budget constraint is usually define as a basic concept in economic modeling,

The framework helps researchers to analyze all possible consumption choices and conditions that a consumer can make within the constraints of his budget. This can be expressed as a mathematical equation and is equally useful whether the consumer is an individual, a family or a business.

Ashraf Mohammed
by Ashraf Mohammed , Chief Operations Officer , Analytics Medical Diagnostics

A budget constraint is the combination of good and services that a consumer can purchase given current prices within his or her income.

Ahmed Mostafa
by Ahmed Mostafa , Manager, Forensics , KPMG ME

That means its no disbursement over the budget and all the disbursement have to be within budget and under its planned figure

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