Why is it that the first step in the budgeting process is to develop the statistics budget?

Question

Why is it that the first step in the budgeting process is to develop the statistics budget?

Answer 1

What are you budgeting for? A company? A project? A household? A science experiment? A food co-op?

The second step in developing a spending plan (a budget) is to examine what you have spent in the period before. I suppose this is what you mean by the statistics budget?

I think the first step in the budgeting process is to define the categories to be used in the budget, and to define the rules that will apply to each category. Then, you can take the second step and put historic data into those categories and apply the rules you developed.

By examining spending in each category and knowing what your planned income will be, you can decide how much you wish to spend in the coming period.