The EU budget is the financial plan of the European Union that outlines how funds will be allocated and spent over a specific period, usually annually. It supports various programs and policies, including economic development, environmental protection, and social initiatives across member states. The budget is funded through contributions from member countries and other sources, such as customs duties. The EU budget is divided into different categories, known as headings, which prioritize areas like agriculture, regional development, and research. Each year, the budget is proposed by the European Commission and must be approved by the European Parliament and the Council of the European Union before it can be implemented.