Incorporating Risk in Revenue Forecasting

In “Fiscal Planning, Budgeting, and Re-Budgeting Using Revenue Semaphores” Cornia, Nelson, and Wilko affirm that risk and uncertainty measures should be incorporated into budgeting process to improve real-time budgeting and reduce adverse effects.

To make revenue forecast more accurate, they argue that methodological innovations and software development should be considered while projecting revenues.

The case studied is the budgeting planning process of the state of Utah.