Budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.
So far as long range planning is concerned, it can be defined as an exercise aimed at formulating a long-term plan, to meet future needs estimated usually by extrapolation of present or known needs. It begins with the current status and charts out a path to the projected status, and generally includes short-term (operational or tactical plans) for achieving interim goals.
DIFFERENCES:
Long term planning and Budgeting has major differences. They differ in kind of Purpose, Process, Focus, People Involved, Information used, Time frame, Accountability, Issues addressed, etc.etc.
Budgets are usually developed to match revenues against planned expenditures and comply with state budget development and reporting requirements.The purpose of strategic financial planning is to project the long-term sources and uses of funds, evaluate the effectiveness of programs and departments, and focus financial resources on programs that help attain the district's vision for students. Enrollment histories, enrollment projections, patterns and strategic goals are all imperative to the planning and purpose.
The budgeting process usually involves routine review of annual expenditures. Budget center directors are given directions on spending limits and possible increases, and new programs are occasionally introduced. Each year, school officials spend a lot of time reviewing these budgets, when all they're really doing is approving last year's budget with a few changes. Financial planning, on the other hand, takes the district through an evaluation process that identifies areas in which district funds are being overspent or spent on ineffective programs.
The focus of a budget is on taking...