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Types of budgeting depend on the use of the budget which could either be personal or business budgets. Business and Personal Budgets. Budgeting is simply the creation of a plan to properly manage money. A budget usually covers a period of time; for instance, a one-year or five-year budget plan.
Cyclically Balanced Budget. An alternative to a budget that is balanced annually is a cyclically balanced budget. This concept counters the more rigid method of balancing a budget by calendar year in favor of balancing the budget based on business cycles. This means that budget surpluses and deficits should be governed by the economic cycle.