Policy:
(i) Policies are the general statements which defines broad parameters within which a manager may function.
(ii) Policies bring uniformity in decision making for the achievement of organisational goals.
(iii) Policies are formulated for all levels and departments in the organisation.
Budget:
(i) It is a statement which forecasts the expected results of a specific task to be performed in the future period.
(ii) Provides quantitative results based on future facts and figures.
(iii) The possible results expressed in numerical terms facilitates the comparison of actual results with expected results and then takes 'corrective actions' subsequently.