What does a budget outline?

A budget primarily serves as a financial document that outlines the government's planned expenditure and revenue for the upcoming financial year. It encompasses detailed projections of how government funds will be allocated across various sectors such as education, healthcare, infrastructure, and defense, along with expected income from taxes and other sources of revenue.

This planning is critical for maintaining fiscal responsibility and ensuring that government activities align with economic goals. By detailing expenditures and revenues, a budget can also provide insights into prioritization and resource allocation based on economic conditions and social needs.

The other options focus on specific aspects of economic activity rather than the comprehensive nature of a budget. For instance, detailing only total household expenditure, taxation policies, or the trade balance does not encompass the full financial planning scope that a budget represents. Thus, the most accurate representation of what a budget outlines is the government’s planned financial activities for a given term.