Municipalities must adjust what for the subsequent year?

• A. Preliminary
• B. Final
• C. Revised
• D. Postponed

Answer: (A)

In budgeting, municipalities plan for the next year by first presenting preliminary estimates of revenues and expenditures. These are early forecasts used to guide discussion and decision-making before final approval. They are adjusted as more information becomes available (such as updated revenue forecasts or changing program needs), so the final budget can more accurately reflect expectations for the coming year. The term preliminary signals that this is an initial, unsettled forecast, not the completed plan.

The other terms describe later stages: a final budget is the approved, enacted plan after deliberation; a revised budget refers to changes made after the budget is enacted (often during the year); and postponed isn’t a standard budgeting term for this context.