Which type of budget is specifically designed for day-to-day expenses?

An operating budget is specifically designed to cover day-to-day expenses of an organization. It includes projections for revenue and expenses related to ongoing operations, such as salaries, utilities, maintenance, and supplies necessary to keep the organization functioning effectively. This type of budget is essential for managing the regular financial activities and ensuring that sufficient funds are allocated to meet routine operational needs.

In contrast, a capital budget focuses on long-term investments in assets, like equipment or property, which would not typically fall under everyday expenses. A project budget is tailored for specific projects with dedicated funding and timelines, while a supplemental budget is often created to address unforeseen expenses or adjustments needed after the initial budget has been set; neither of these directly relates to the daily operational requirements.