Why excise duty not deducted from cash balance in cash budget?

Excise duty is typically not deducted from the cash balance in a cash budget because it is considered an indirect tax that is applied to the sale of goods rather than a direct outflow of cash. The cash budget primarily focuses on actual cash inflows and outflows, and excise duty liabilities are often settled at a later date when goods are sold or manufactured. Therefore, it is accounted for separately to provide a clearer picture of available cash for operational needs.