0 Anonymous Asked: February 6, 2019 What is the difference between a Budget and a Forecast? 0 budgetforecast Share Facebook 3 Answers Voted Oldest Recent Mauricio Rubio Sydney, Australia 8 Questions 33 Answers 2 Best Answers 730 Points View Profile Mauricio Rubio Senior Project Manager Added an answer on February 6, 2019 at 12:10 pm A budget is the amount of money you have to spend on a Project. It’s a snapshot of the amount of time you estimate you will spend on the project before you even get started or a set amount Management defines you have to spend on that project. So basically, it’s a baseline amount and it remains unchanged throughout the entire life cycle of the project. A Forecast on the other hand, is the estimated amount you project you will spend on the project at a given point in time. Generally, Forecasts are updated on a monthly basis and they vary every month. But they don’t have to, they can remain the same if you consider the projection to remain accurate. The Forecast can be above or below your Budget or it can even be the same amount, although it rarely is, as things will start to fluctuate over time. Typically, the Forecast equals the Budget amount at the beginning of the project, but it tends to vary over time. As a PM, you will always strive to keep your Forecast as close as you can to the Budget. 2 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Ian Johns 0 Questions 6 Answers 0 Best Answers 55 Points View Profile Ian Johns Newbie Replied to answer on February 13, 2019 at 12:06 pm Just need to be careful on the forecast – if you are aware of a big change in forecast you may not want to wait for the forecast update to advise the relevant people 2 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Mauricio Rubio Sydney, Australia 8 Questions 33 Answers 2 Best Answers 730 Points View Profile Mauricio Rubio Senior Project Manager Replied to answer on February 13, 2019 at 12:18 pm Agreed, good point. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.