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Why do budgets for projexts fail?

Why do budgets for projexts fail?
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Answer: A budget is a numerical statement showing expected results in terms of costs, revenue, and other data. A project budget shows estimated costs to be incurred for the scheduled completion of a given project under consideration.

As already stated, budgets are linked to scheduled completion and when the situations become undesirable or unfavorable, the project has to be delayed which calls for readjustment of the original budget or in other words, failure of the initial project budget.

To avoid this, managers now, provide for contingencies in advance, but still, project budgets fail as we cannot predict the uncertainties with a hundred percent surety and therefore, budget for a project will fail to some extent always.


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