Question

when an organization is submitting a budget for approval, what challenges or issues may arise as of the reason for non approval or what reasons may hold the budget up

Answer 1

Answer: Getting an approval for budget in an organization is not easy and there may be many challenges that may hold up the budget or may act as a hindrance for getting it passed. Some of these issues are

1. Resource limitations: Every organization has limited resources and they pass and approve the budgets for different departments based on it. The resource limitation is one of the major reason that the budgets are held up or not passed
2. Organizational politics: Often there is a tussle for resources between the various departments inside the organizations. Hence this give rise to politics and this acts as a major reason why the budgets may get delayed
3. Non Conviction: At times the budgets are non-convincing to the finance department. The finance department or the higher management at times is not convinced with the budget proposal and they feel that certain elements are not required. This delays the approval of the budgets.