Budgeting is the process of creating a plan to spend your money. Budget Planning helps to determine in advance the expenses and how to fund them. With reference to government the budget is its most important economic policy tool and provides a comprehensive statement of the priorities of a nation. There is also an obligation on the legislature to ensure that the revenue and spending measures it authorizes are fiscally sound, match the needs of the population with available resources, and that they are implemented with aim of nation-building.