**Budget:**
- A financial plan outlining projected income and expenses for a specific period.
- Helps set financial goals, allocate resources, and monitor financial performance.
- Includes revenue and expense forecasts to guide financial decisions.
**Income and Expenditure Statement:**
- Summarizes revenues, expenses, and net income (or loss) over a specific period.
- Provides a snapshot of financial performance during the reporting period.
- Focuses on actual income earned and expenses incurred.
In summary, a budget is a proactive financial plan for future periods, while an income and expenditure statement is a retrospective summary of financial performance for a specific period.
