Question

What are some issues that may crop up when budgeting for a project?

Discuss ways in which to keep budget planning from becoming a game.

Answer 1

Answer - Deciding on an accurate and realistic budget is a very important step of any project, however, some biases and insufficient knowledge often result in issues in the budgeting process and turning the budget into a game of power.

Common issues are:

• Inaccurate expense allocation
• Rigidity in decision making
• Unrealistic forecasting
• Only considering tangible assets
• The difference in opinion among budget planners

Common solutions that could streamline the budgeting process and solve the problems are:

• Emphasizing and using accurate tools for realistic forecasting
• Emphasizing on planning and discussing every minor detail of the project
• Eliminate outdated budgeting tools and techniques
• Use a voting system for weighing opinions