Budgetgestehung

Budgetgestehung is a budgeting concept describing the process by which an organization generates its budget for a specific period. It combines projected revenues, cost estimates, capital plans, and strategic objectives to produce a formal budget baseline used for planning and control. The term blends elements of budgeting with the notion of generation or creation.

Used in corporate finance, public administration, and non-profit management, budgetgestehung refers to the planning phase where inputs are gathered, assumptions stated, and targets set. It is distinct from budget execution, which concerns spending and revenue realization during the period.

Common approaches include bottom-up budgeting, where departments submit estimates; top-down budgeting, where senior management sets targets; and driver-based methods that link budget figures to key performance drivers. Variants such as zero-based budgeting and rolling budgets are often discussed within the budgetgestehung framework.

Typical steps involve defining objectives, identifying cost and revenue drivers, collecting data, preparing unit-level estimates, aggregating into a master budget, incorporating contingencies, and obtaining management or board approval. Scenario analysis and sensitivity testing may be used to test assumptions under different future conditions.

Advantages include improved alignment with strategy, enhanced accountability, and more deliberate resource allocation. Critics point to time intensity, potential biases in estimation, and rigidity that can reduce responsiveness. Effective budgetgestehung usually relies on governance rules, transparent assumptions, and periodic revisions.