Budget Variance

Summary

The difference between planned and actual financial performance.

Conventional Definition

Budget Variance is commonly calculated as actual results minus budgeted results, expressed in absolute or percentage terms.

Value Realization-Oriented Definition

In Value Realization, Budget Variance should distinguish disciplined adaptation from uncontrolled drift and connect spending changes to outcome evidence.

Notes

This draft measure is an indicator, not a complete proof of realized value. It should be interpreted with baseline, attribution, timing, confidence, quality, risk, and sustainability evidence.