Limitations of Budgetary Control

The preparation of a budget under inflationary conditions and changing Government policies is really difficult. Thus, the accurate position of the business cannot be estimated.
Accuracy in budgeting comes through experience. Hence it should not be relied on too much in the initial stages.
Budget is only a management tool. It is not a substitute for management in decision making.
Budgeting involves heavy expenditure, which small concerns cannot afford.
There will be active and passive resistance to budgetary control as it points out the efficiency or inefficiency of individuals.
The success of budgetary control depends upon willing cooperation and team work. This is often lacking.