The present invention relates to a method for encoding a video signal and apparatus therefor, and more particularly, to a method and an apparatus therefor, the method for determining, when the number of significant bits of wavelet coefficient information of a current precinct is greater than a truncation position, a bit budget for code information of the wavelet coefficient information as 1, determining, when the number of significant bits of the wavelet coefficient information is smaller than the truncation position, the bit budget of the code information of the wavelet coefficient information as 0, performing, when the number of significant bits is same as the truncation position, quantization on the wavelet coefficient information, determining, when a result of the quantization is 0, the bit budget for the code information of the wavelet coefficient information as 0, and determining, when the result of the quantization is not 0, the bit budget for the code information of the wavelet coefficient information as 1.