A budget forecast is a projection of future revenues, expenses, and financial position beyond the current budget year. Multi-year forecasts help municipalities anticipate future challenges and plan accordingly—identifying when major infrastructure needs will arise, projecting the impact of growth or decline, and assessing long-term sustainability of current spending patterns. Forecasts involve uncertainty, as economic conditions, provincial grants, and other factors can change unexpectedly. Still, forecasting discipline encourages proactive planning rather than reactive crisis management. Many municipalities now include three-to-five year forecasts in budget documents to provide longer-term perspective on financial sustainability.