What is the difference between budgeting and planning?

Budgeting is the apportionment of available funding amongst various sources of demand. Capital Budgets are intended as fixed constraints to expenditure and are normally allocated annually. Planning is the forecasting of likely expenditure. Capital expenditure plans provide a more granular expectation of costs over time, typically monthly, and slight variations to plan are normal. SAP facilitates the allocation of budgets to individual investment measures (projects and internal orders). SAP reporting allows actual project performance to be monitored with reference to both allocated budgets and expenditure plans.