Budget overruns in software projects often stem from several core factors. These include scope creep, arising from expanding project requirements; inadequate initial planning, resulting in unforeseen costs; unrealistic timelines that strain resources; change management challenges and the impact of frequent alterations; underestimation of project complexity; resource misallocation; inadequate risk management; and communication gaps among stakeholders.

Recognizing and proactively addressing these factors is crucial for successful project budgeting in software development.