(Select 2) What is true about budgets in SAFe?

Question

Options

• ABudgets are allocated to projects.
• BBudgets are allocated to strategic themes.
• CBudgets are allocated to portfolios.
• DBudgets are allocated to teams.
• EBudgets are allocated to value streams.

• A
  4% (2)
• B
  2% (1)
• C
  91% (41)
• D
  2% (1)

Explanation

In SAFe's Lean Portfolio Management (LPM), budgets flow in two ways: enterprises allocate budgets to portfolios (C), and those portfolios then distribute funding to value streams (E) - replacing the traditional project-based funding model with a more continuous, flow-based approach.

Why the distractors are wrong:

• A (projects): SAFe explicitly abandons project-based funding because it creates start/stop waste; value streams are funded as long-lived entities instead.
• B (strategic themes): Strategic themes guide investment decisions and portfolio direction but are not funding recipients - they inform where budget flows, not who receives it.
• D (teams): Teams are funded through their value stream, not via direct budget allocation.

Memory tip: Think of it as a funnel - the Enterprise → Portfolio → Value Stream. Budget enters at the portfolio level and settles at the value stream level. If you see "projects" or "teams" as budget targets on the exam, those are SAFe anti-patterns meant to trap you.

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