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Budgeting in project management is a comprehensive process that goes beyond simple cost estimation. It involves creating a detailed plan that outlines all financial resources required for the project, including not just costs but also allocations for resources, contingency funds, and projected income if applicable. This comprehensive planning ensures that all aspects of the project's finances are considered, facilitating effective tracking and management of spending throughout the project lifecycle.

While estimating costs is a component of budgeting, focusing solely on this aspect does not encompass the entirety of what budgeting entails. Tracking expenses over time is an important part of budget management but is a subsequent step rather than the foundational aspect of budgeting itself. Assessing risks and impacts is crucial in project management, but it relates more to project planning and risk management rather than the budgeting process specifically. Therefore, creating a comprehensive plan for financial resources captures the full scope of budgeting within project management.