Certified Government Financial Manager (CGFM) Practice Exam

The budget proposed to the legislature by the executive branch is known as the Executive Budget. This terminology reflects the process through which the executive authority, typically the governor or president, outlines the proposed financial plan for the upcoming fiscal period. It details expected revenues and expenditures, setting the stage for legislative approval, modifications, or rejection.

The Executive Budget is crucial because it establishes the priorities of the executive branch and serves as a guideline for legislative discussions and decision-making regarding funding and resource allocation. This contrasts with other types of budgets; for instance, a Legislative Budget refers to a budget developed by the legislative body itself, while an Operational Budget focuses on the day-to-day operations of an organization. A Supplemental Budget is usually introduced later in the fiscal year to address unforeseen expenses or changes in financial circumstances.