diff --git a/avm/res/consumption/budget/README.md b/avm/res/consumption/budget/README.md
index 4b4f942775..927392c5f1 100644
--- a/avm/res/consumption/budget/README.md
+++ b/avm/res/consumption/budget/README.md
@@ -26,8 +26,9 @@ The following section provides usage examples for the module, which were used to
 >**Note**: To reference the module, please use the following syntax `br/public:avm/res/consumption/budget:<version>`.
 
 - [Using only defaults](#example-1-using-only-defaults)
-- [Using large parameter set](#example-2-using-large-parameter-set)
-- [WAF-aligned](#example-3-waf-aligned)
+- [Using `thresholdType` `Forecasted`](#example-2-using-thresholdtype-forecasted)
+- [Using large parameter set](#example-3-using-large-parameter-set)
+- [WAF-aligned](#example-4-waf-aligned)
 
 ### Example 1: _Using only defaults_
 
@@ -89,7 +90,71 @@ module budget 'br/public:avm/res/consumption/budget:<version>' = {
 </details>
 <p>
 
-### Example 2: _Using large parameter set_
+### Example 2: _Using `thresholdType` `Forecasted`_
+
+This instance deploys the module with the minimum set of required parameters and `thresholdType` `Forecasted`.
+
+
+<details>
+
+<summary>via Bicep module</summary>
+
+```bicep
+module budget 'br/public:avm/res/consumption/budget:<version>' = {
+  name: 'budgetDeployment'
+  params: {
+    // Required parameters
+    amount: 500
+    name: 'cbfcst001'
+    // Non-required parameters
+    contactEmails: [
+      'dummy@contoso.com'
+    ]
+    location: '<location>'
+    thresholdType: 'Forecasted'
+  }
+}
+```
+
+</details>
+<p>
+
+<details>
+
+<summary>via JSON Parameter file</summary>
+
+```json
+{
+  "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
+  "contentVersion": "1.0.0.0",
+  "parameters": {
+    // Required parameters
+    "amount": {
+      "value": 500
+    },
+    "name": {
+      "value": "cbfcst001"
+    },
+    // Non-required parameters
+    "contactEmails": {
+      "value": [
+        "dummy@contoso.com"
+      ]
+    },
+    "location": {
+      "value": "<location>"
+    },
+    "thresholdType": {
+      "value": "Forecasted"
+    }
+  }
+}
+```
+
+</details>
+<p>
+
+### Example 3: _Using large parameter set_
 
 This instance deploys the module with most of its features enabled.
 
@@ -175,7 +240,7 @@ module budget 'br/public:avm/res/consumption/budget:<version>' = {
 </details>
 <p>
 
-### Example 3: _WAF-aligned_
+### Example 4: _WAF-aligned_
 
 This instance deploys the module in alignment with the best-practices of the Azure Well-Architected Framework.
 
diff --git a/avm/res/consumption/budget/main.json b/avm/res/consumption/budget/main.json
index d51817dbd2..b68ced8a2d 100644
--- a/avm/res/consumption/budget/main.json
+++ b/avm/res/consumption/budget/main.json
@@ -5,8 +5,8 @@
   "metadata": {
     "_generator": {
       "name": "bicep",
-      "version": "0.28.1.47646",
-      "templateHash": "13231547958069431465"
+      "version": "0.29.47.4906",
+      "templateHash": "9899827298268482806"
     },
     "name": "Consumption Budgets",
     "description": "This module deploys a Consumption Budget for Subscriptions.",
diff --git a/avm/res/consumption/budget/tests/e2e/forecasted/main.test.bicep b/avm/res/consumption/budget/tests/e2e/forecasted/main.test.bicep
new file mode 100644
index 0000000000..91112be1f4
--- /dev/null
+++ b/avm/res/consumption/budget/tests/e2e/forecasted/main.test.bicep
@@ -0,0 +1,37 @@
+targetScope = 'subscription'
+
+metadata name = 'Using `thresholdType` `Forecasted`'
+metadata description = 'This instance deploys the module with the minimum set of required parameters and `thresholdType` `Forecasted`.'
+
+// ========== //
+// Parameters //
+// ========== //
+
+@description('Optional. The location to deploy resources to.')
+param resourceLocation string = deployment().location
+
+@description('Optional. A short identifier for the kind of deployment. Should be kept short to not run into resource-name length-constraints.')
+param serviceShort string = 'cbfcst'
+
+@description('Optional. A token to inject into the name of each resource.')
+param namePrefix string = '#_namePrefix_#'
+
+// ============== //
+// Test Execution //
+// ============== //
+
+@batchSize(1)
+module testDeployment '../../../main.bicep' = [
+  for iteration in ['init', 'idem']: {
+    name: '${uniqueString(deployment().name)}-test-${serviceShort}-${iteration}'
+    params: {
+      name: '${namePrefix}${serviceShort}001'
+      location: resourceLocation
+      amount: 500
+      contactEmails: [
+        'dummy@contoso.com'
+      ]
+      thresholdType: 'Forecasted'
+    }
+  }
+]