ocr: Potential Budgeting. Hazards Despite the range of advantages that a budgetary planning and control system may lend to an organisation, the tollowing list of potentially damaging effects should also be given some attention: Budgetary. Slack Budgetary slack isa - a phenomenon which otten arises in the budgeting process due to that most unpredictable of parameters, that is, human behaviour. AI manager with responsibility for departmental costs may feel inclined to set as high a budgeted cost allowance as possible. This would make the task of keeping actual costs below budgeted costs that much eas ...