An important process that is conducted at a number of levels in the nation is budgeting. There are a number of models which has been proposed in the for the purpose of budget and financing. It is thus a regular practice and the managers follow a specific method for the purpose of budgeting. One such model which is most famous and widely used since years is the traditional model of budgeting. But, the world is changing each and every day. Similar to every change, the system of budgeting is also witnessing a continuous change (VanderStede&Wim, 2000). The present markets and the industries are undergoing a wide change. Thus, there in the system which is followed for the budgeting as well. This, calls for the abandonment of the traditional system of budgeting which includes the primitive and outdated methods for the budgeting. In this research paper, we are going to do a detailed the need for the abandonment of the traditional system of budgeting. There will be an analysis of the traditional model of budgeting and will study about the recent external pressures which has led to the need for the abandonment of the budgeting system. We will also study the process involved in the traditional budgeting and the need for the abandonment of the same.