Final answer:
Yes, an allotment is an internal allocation of funds. This process, agreed between department heads and the chief executive, is critical for effective budget management within organizations, including governmental entities.
Step-by-step explanation:
An allotment can indeed be described as an internal allocation of funds periodically. This is typically a process agreed upon by department heads and the chief executive. Departments within an organization or government must adhere to budget constraints, and allotments help in managing these constraints by setting internal boundaries on available funds.
It's a component of the larger budgeting process that involves both receipts (income from taxes and other sources) and expenditures (expected spending). Through the democratic process, government officials receive guidance on how income should be spent, which helps to address needs and priorities while adhering to budget limitations.