Input from several levels of management is important in developing a budget. However, lack of it is not the item that would most likely cause the planning and budgeting system to fail.
Historical financial data is useful in developing a budget, as long as each line item of historical information is not taken as the basis for the next year's budget without any real planning. However, lack of historical financial data is not the item that would most likely cause the planning and budgeting system to fail.
Lack of adherence to rigid budgets during the year is not something that would cause the planning and budgeting system to fail. In fact, a budget needs to be flexible enough to be able to be changed if the assumptions upon which it was built change significantly during the year.
Lack of top management support is the item that would most likely cause the planning and budgeting system to fail. If the budget is not supported by top management, lower level managers and employees will make no effort to meet the budget targets, and the budget will become a meaningless exercise.
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