What type of budget covers ongoing activities that are repeated year after year?

The operating budget is designed to cover the ongoing activities of an organization that occur repeatedly from year to year. This includes everyday expenses such as salaries, utilities, supplies, and maintenance costs, which are essential for the continued functioning of services and programs. The operating budget focuses on the revenues and expenditures related to these day-to-day operations, providing a clear picture of how much money is needed to maintain these essential functions.

In contrast, a capital budget typically involves long-term investments in fixed assets, like buildings or equipment, that will benefit the organization over multiple years. A financial budget encompasses both capital and operating budgets but is broader in scope; it focuses on the overall financial position and future financial activities. The executive budget refers more specifically to the budget prepared by top management that lays out their priorities and funding allocations but does not specifically target ongoing, repetitive activities.