A budget agreement is a formal arrangement between parties, often within a government or organization, to outline how financial resources will be allocated and spent over a specific period. These agreements typically include revenue sources, expenditure limits, and priorities for funding various programs or services. In the context of government, budget agreements are crucial for ensuring that public funds are managed effectively. They often require negotiation among different political groups, such as Congress in the United States, to reach a consensus on fiscal policies and spending priorities.