What does the term "budget execution by commitments" refer to?

The term "budget execution by commitments" specifically refers to the process of tracking funds that have been allocated and spent against the budget. This concept is crucial in financial management as it ensures that expenditures align with the planned budgetary allocations, allowing for effective monitoring of financial resources.

When organizations commit funds, they might not immediately spend them but still need to ensure that they are accounted for in financial reports. This tracking allows managers to see not only how much has been spent but also how much is earmarked for future expenditures. It provides a comprehensive view of the financial status of a project or organization, which is essential for sound financial planning and accountability.

The other choices focus on narrower aspects of budgeting and financial management. For example, looking at actual spending versus proposed spending is part of budget analysis but does not encompass the commitments that have been made. Financial commitments in public relations and monitoring contracts awarded during the budget cycle are also relevant topics, but they represent specific areas within the broader context of budget execution and tracking funds against the budget.