Budgeting is very important for everybody that makes money, including companies and governments. So far you are getting money on a regular basis there is need to have a budget for how you spend the money. Even when you are gifted money that you didn't plan for, there is still need to make a budget so that you don't waste it on things that are not important to you. The simplest definition of budgeting is having a plan on how to allocate money so that you will not misuse it.

It is said in economics that human wants are insatiable so you have to know the difference between wants and needs. As human beings we want many things that we can't afford so we have to focus on our needs (essentials). Then we have to prioritize the 'needs' and the most important one is the first to be allocated funds to, then the second and down the hierarchy.

It is the same for business people and governments, they have to start from a planing stage and arrive at allocating funds according to importance of their expenses and projects.

Budgets requires discipline, what does not fall into the plan should be carried over or suspended. You can add other importance of budgeting that you know so that we can all learn from each other.