What does baseline budget mean?

baseline budget meaning in Business Dictionary

1. Contract administration: The amount of the authorized cost of an agreement and the estimated cost of authorized non-priced work. This is the standard that measures expense compliance. 2. Business: the cornerstone useful for organizing a cover the next fiscal year. The baseline spending plan begins with the existing 12 months budget and it is adjusted in accordance with real spending in the present 12 months, rising prices, projections for brand new expenditures and any extra money expenditures that are anticipated.