diff --git a/problems/minibudget/SPEC-v1.txt b/problems/minibudget/SPEC-v1.txt
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+PROJECT: minibudget
+OVERVIEW: A command-line income and expense tracker.
+COMMANDS: init, add, list.
diff --git a/problems/minibudget/SPEC-v2.txt b/problems/minibudget/SPEC-v2.txt
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+PROJECT: minibudget
+OVERVIEW: A command-line income and expense tracker.
+COMMANDS: init, add, list.
+ERROR HANDLING: If amount is negative, print "Error: Amount must be positive."
+NEW COMMAND: delete <id> - Removes a transaction by its ID.
+ERROR HANDLING: If ID does not exist during delete, print "Error: Transaction not found."
diff --git a/problems/minibudget/problem.json b/problems/minibudget/problem.json
new file mode 100644
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+++ b/problems/minibudget/problem.json
@@ -0,0 +1,4 @@
+{
+  "name": "minibudget",
+  "author": "Deniz Yucel Uzunay"
+}
diff --git a/problems/minibudget/test-v1.sh b/problems/minibudget/test-v1.sh
new file mode 100644
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+++ b/problems/minibudget/test-v1.sh
@@ -0,0 +1,23 @@
+#!/bin/bash
+# Test V1 Specifications for minibudget
+
+# Clean up before testing
+rm -rf .minibudget
+
+# Test initialization
+python3 minibudget.py init
+
+# Test adding transactions
+python3 minibudget.py add INCOME 5000 "Salary"
+python3 minibudget.py add EXPENSE 150 "Groceries"
+
+# Test listing transactions
+OUTPUT=$(python3 minibudget.py list)
+
+if [[ "$OUTPUT" == *"Salary"* ]] && [[ "$OUTPUT" == *"Groceries"* ]]; then
+    echo "V1 Tests Passed successfully."
+    exit 0
+else
+    echo "V1 Tests Failed."
+    exit 1
+fi
diff --git a/problems/minibudget/test-v2.sh b/problems/minibudget/test-v2.sh
new file mode 100644
index 00000000..136084a4
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+++ b/problems/minibudget/test-v2.sh
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+#!/bin/bash
+# Test V1 Specifications for minibudget
+
+# Clean up before testing
+rm -rf .minibudget
+
+# Test initialization
+python3 minibudget.py init
+
+# Test adding transactions
+python3 minibudget.py add INCOME 5000 "Salary"
+python3 minibudget.py add EXPENSE 150 "Groceries"
+
+# Test listing transactions
+OUTPUT=$(python3 minibudget.py list)
+
+if [[ "$OUTPUT" == *"Salary"* ]] && [[ "$OUTPUT" == *"Groceries"* ]]; then
+    echo "V1 Tests Passed successfully."
+    exit 0
+else
+    echo "V1 Tests Failed."
+    exit 1
+fi
diff --git a/spec.txt b/spec.txt
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+++ b/spec.txt
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+PROJECT: mini-budget
+AUTHOR: Deniz Yücel Uzunay (251478081)
+VERSION: v1
+DATE: 2026-03-16
+
+========================================
+OVERVIEW
+========================================
+
+mini-budget is a command-line income and expense tracker.
+It stores financial transactions in a plain text file and supports
+adding, listing, checking balance, and deleting transactions.
+
+All data is persisted in a directory called .minibudget/
+in the current working directory.
+
+========================================
+COMMANDS
+========================================
+
+--- init ---
+Usage: python minibudget.py init
+Creates a .minibudget/ directory and an empty transactions.dat file.
+If .minibudget/ already exists, print "Already initialized" and exit.
+
+--- add ---
+Usage: python minibudget.py add <TYPE> <amount> "<description>"
+TYPE must be either INCOME or EXPENSE.
+Appends a new transaction to transactions.dat.
+Each transaction has: id (auto-increment), type, amount, description, created_date.
+Prints "Added transaction #<id>: <TYPE> <amount>"
+
+--- list ---
+Usage: python minibudget.py list
+Prints all transactions, one per line:
+  [1] [INCOME] 5000 - Salary (2026-03-16)
+  [2] [EXPENSE] 150 - Groceries (2026-03-16)
+If no transactions exist, prints "No transactions found."
+
+--- balance ---
+Usage: python minibudget.py balance
+Calculates the total balance (Total INCOME - Total EXPENSE).
+Prints "Current Balance: <amount>"
+
+--- delete ---
+Usage: python minibudget.py delete 1
+Removes transaction #1 from transactions.dat.
+Prints "Deleted transaction #1."
+If transaction does not exist, prints "Transaction #1 not found."
+
+========================================
+DATA FORMAT
+========================================
+
+File: .minibudget/transactions.dat
+Format: One transaction per line, fields separated by |
+Example:
+1|INCOME|5000|Salary|2026-03-16
+2|EXPENSE|150|Groceries|2026-03-16
+
+========================================
+ERROR HANDLING
+========================================
+
+- Running any command before "init": print "Not initialized. Run: python minibudget.py init"
+- Invalid command: print "Unknown command: <command>"
+- Missing arguments: print "Usage: python minibudget.py <command> [args]"
+- Negative amount: If <amount> is less than 0, print "Error: Amount must be positive."
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