Difference between Budget & forecast ?

forecasting is the base budgeting 

forecasting is the expectation of occurrence for certain event under certain circumstances 

budget is the future financial results that company expect to meet its aims 

forecasting is made first after this company make budget  

The general budget, which is to be in the beginning of the fiscal year reflect the estimated figures

The balance sheet is in the last fiscal year reflect the figures Fielh

In essence, a budget is a quantified expectation for what a business wants to achieve. Its characteristics are:

• The budget is a detailed representation of the future results, financial position, and cash flows that management wants the business to achieve during a certain period of time.
• The budget may only be updated once a year, depending on how frequently senior management wants to revise information.
• The budget is compared to actual results to determine variances from expected performance.
• Management takes remedial steps to bring actual results back into line with the budget.
• The budget to actual comparison can trigger changes in performance-based compensation paid to employees.

Conversely, a forecast is an estimate of what will actually be achieved. Its characteristics are:

• The forecast is typically limited to major revenue and expense line items. There is usually no forecast for financial position, though cash flows may be forecasted.
• The forecast is updated at regular intervals, perhaps monthly or quarterly.
• The forecast may be used for short-term operational considerations, such as adjustments to staffing, inventory levels, and the production plan.
• There is no variance analysis that compares the forecast to actual results.
• Changes in the forecast do not impact performance-based compensation paid to employees.

Thus, the key difference between a budget and a forecast is that the budget is a plan for where a business wants to go, while a forecast is the indication of where it is actually going.

Realistically, the more useful of these tools is the forecast, for it gives a short-term representation of the actual circumstances in which a business finds itself. The information in a forecast can be used to take immediate action. A budget, on the other hand, may contain targets that are simply not achievable, or for which market circumstances have changed so much that it is not wise to attempt to achieve. If a budget is to be used, it should at least be updated more frequently than once a year, so that it bears some relationship to current market realities. The last point is of particular importance in a rapidly-changing market, where the assumptions used to create a budget may be rendered obsolete within a few months.

In short, a business always needs a forecast to reveal its current direction, while the use of a budget is not always necessary.

A forecast looks the same as a plan or budget and the mechanics of putting a forecast together are the same as for a plan or budget. However a forecast is really quite different from a budget, principally because of the way it is used, and the data it contains. If you use them wisely forecasts will be the major tool in ensuring you never run out of cash.

While Forecast and Budget are important tools of managerial decision making there exists a difference between the two. 

     Budget :- It is based on standard cost and revenue the management establishes before the task is executed. It is process of monetizing the plan and give it a understandable structure. Budget provides a outlook of expected end results based on what has been planned or established.

    Forecast :- It is a expected end result based on what has been experienced previously and the circumstances at hand. Forecasts enables management to predict the results by adjusting their existing plans according to the latest information. 

Budget is the detailed Picture of the financial position that management want in a period,

and the forecast is latest prospect of what will happen on new few month on the base of what is going on NOW.

Budget  is the detailed financial plan for a particular period. This will be like the bible for an organization. (will not be changed).

Forecast - Depends on the requirement, this can be changed based on the trend.

The key difference between a budget and a forecast is that the budget is a plan for where a business wants to go, while a forecast is the indication of where it is actually going