What is a biennial budget?

A biennial budget is a financial plan that covers a two-year period, allocating funds for government programs and services over that timeframe. This approach contrasts with annual budgets, which are planned for one year. Biennial budgeting can provide greater stability and predictability in funding, allowing for more strategic long-term planning. However, it may also complicate adjustments to funding in response to changing economic conditions or emerging needs.