Traditional budgeting system does not consider the time value
of money.
Traditional budgeting system do no reflect the true value of
the project as it does not include discounting.
Traditional budgeting systems such as payback period emphasize
only on the time frame that how much time the project will take to
recover the initial cost.
Traditional budgeting system has a low chance of responsiveness
& also requires many management resources.
Traditional budgeting system do not provide accuracy of project
evaluation & which may affect the organisation in the long
term.