Every situation today has a paradox to it. A paradox is a statement that apparently contradicts itself and yet might be true (or wrong at the same time). Budgeting is no different.
Budgeting, as defined, is a process wherein a certain amount of resources (funds) are allocated to each expense. This ensures that the resources are optimally utilized and there is no dissatisfaction.
The Paradox, however, makes a different statement:
There needs to be a certain level of dissatisfaction within an organisation before it starts to examine its current situation and search for alternatives. It seems that some momentum for change needs to exist before changes are consideredWhat it means is that there has to already be some under/ over utilized resources, which are resulting in in-satisfactory outputs. Only then will the organisation think up of adding a budget, knowing very well that if they do not use budgeting, they will end up in a situation depicted in the former statement.
Well, it seems more like human nature to do such things... In short, the paradox says that Organisations will dig the well only after there is a severe short supply of water and while they are at it, they will face all the more resource crunch. All this, when they are fully aware of the depletign water supply :P
