Could you explain the concept of budgeting in a business?

Budgets are statements of estimated resources set apart for execution of planned works or activities over a specified period of time. A budget is the blue print of the outcome of the organization's operations in a financial year. Budget indicates the quantitative parameters of an organization's performance. Terry has defined budgetary control "as a process of finding out what is being done and comparing the result with corresponding budget data to verify accomplishments, or to remedy differences."