What is the difference between Budgeting & Forecasting?

Thanks for invitation,

In a very prisce wording,

- Budguting is the process of setting a future plan for income and expenses in limited period usually a year.

Whereas,

Forecasting is the is the process of making predictions of the future based on past and present data and most commonly by analysis of trends.

There is a range of determinants which differentiate budget and forecast. Some of which are as follows: -Budget is based on entity's own information together with certain market factors, whereas forecast is based on industry information as a whole -Budget is based on facts and figures, whereas forecasts involve a degree of assumptions and hypothesis

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.