Budget planning uses potential revenue sources such as which of the following?

• A. fringe benefits
• B. projected taxes
• C. projected utilities
• D. federal income taxes

Answer: (B)

Budget planning centers on estimating incoming funds to support operations and programs. Taxes provide the primary revenue stream in many levels of government, so projecting tax revenue is central to building a budget. Fringe benefits are part of what the organization pays to its employees, not money it brings in. Projected utilities refer to anticipated costs for running operations, not revenue. Federal income taxes are collected by the federal government, so they aren’t typically counted as direct revenue for a local or state budget. Therefore, forecasting taxes is the best fit as a potential revenue source in budget planning.