A financial forecast is a tool used in financial management that provides estimates based on historical data, current market trends, and future projections. It is an analysis of the present and projected financial situation used to inform strategic and operational planning.
This will aid in forecasting government revenues and expenditures, which can be used to anticipate potential changes in policy, strategic goals, or community services. The budgeting process for the upcoming year cannot begin without the forecast. Better choices may be made with the help of a reliable prediction, allowing governments to keep their budgets in check and provide citizens with vital services.
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