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Adding safety factor to a time or cost estimate to ensure the estimate is met when the project is executed.

for example: Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction

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Q: What is padding estimates?
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Definition of budget padding?

Padding the budget means making the budget proposal larger than the actual estimates for the project. This is done either by increasing a project's expenses or decreasing its expected revenue. The goal of budget padding is to get an approval committee to grant an artificially high level of funding to the budget maker's proposed project. There is some contention over the exact definition of padding: some contend that inflating expenses to take expected inflation into account is responsible foresight rather than padding, while others see any increase beyond current estimates as padding.


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{| ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" | 1950 | 7,891,957 ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: #bbbbbb 1px solid" | 1960 | 7,781,984 ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" | 1970 | 7,894,862 ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" | 1980 | 7,071,639 ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" | 1990 | 7,322,564 ! style="PADDING-RIGHT: 1px; PADDING-: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" | 2000 | 8,008,288 |}


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