Budgetary control refers to the systematic process of setting financial goals, creating budgets to achieve those goals, and monitoring actual performance against the budget to ensure adherence. It is an essential tool in both organizational and personal financial management, as it helps to ensure resources are allocated efficiently and objectives are met. For businesses, budgetary control involves setting budgets for departments or projects and comparing actual expenditure and income with these budgets to identify variances. By reviewing these variances, management can take corrective actions to address overspending or underperformance.

In practical use, budgetary control aids in decision-making and resource allocation. For instance, if a department exceeds its budget in a particular area, adjustments might be necessary in other areas to balance the overall budget. Additionally, budgetary control supports accountability, as team leaders or individuals can be tasked with staying within budget for their areas of responsibility. For example, a project manager might use budgetary control to monitor labor and materials costs to ensure a project remains profitable.

Overall, budgetary control is not only a financial tool but also a strategic process that reinforces efficiency, accountability, and financial health within an organization or personal financial framework.