All organizations need to plan their budgets at least annually, but those organizations practicing more advanced asset management are likely to have planned their budgets for the next three to five years if not longer. Undertaking road maintenance clearly requires a financial commitment from senior leaders in the organization. This financial commitment is needed to fund the staffing of the organization and routine and cyclical maintenance activities as well as periodic maintenance activities. Where organizations undertake road maintenance themselves, the financial plan should also include budgeting for physical resources to undertake the maintenance activities that include labour, materials, and construction equipment.
The budget allocated may come from different sources that fund both the maintenance activities (including routine maintenance) and the capital activities (investment). This funding may come directly from the central government, donor organizations, local governments and municipalities, or tolls. The financial plan will be used to demonstrate the activities that the budget will be allocated to and why the budget is needed.
The financial plan should be part of the asset management plan. It should be informed by lifecycle planning and the maintenance standards adopted by the organization.