The purpose of an annual budget for municipalities is to outline the municipality's financial plan for the upcoming year. It provides a detailed plan for spending public funds on various programs and services, including infrastructure, public safety, education, and social services. The annual budget serves as a financial roadmap for the municipality, guiding spending decisions and helping officials to allocate resources effectively. It also promotes transparency by providing stakeholders with a clear understanding of the municipality's financial priorities and objectives. The annual budget is critical for effective financial management and accountability in cities.