An annual budget is a financial plan that outlines an organization's projected revenue and expenses for a specific period, usually a calendar year or a fiscal year. It is an essential component of financial planning and helps businesses align their financial resources with their strategic goals.

An annual budget plan is defined as a document that details the projected income and expenses of an individual, business entity, or organization within a period of one year. Businesses typically use this document to keep track of their financial standing within the year.