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Improvement targets and budget targets

I would like to know if the quality objective for scrap has to be similar to the budget number for the scrap for the same facility. At the plant I work, we have a quality objective for scrap as one percentage number of production cost and our budget target is different number of total production cost, one of the internal auditor mentioned, they need to be same/linked, I am in disagreement as our budget is what my plant manager agrees to the finance and says this is what we budget for this year based on our volume past performance etc. and then our quality objective is set as a target to drive the improvement over reported scrap numbers.