Is it normal for companies to hire without securing the budget first?

Just went through multiple rounds of interviews with a company—including salary negotiations and reference checks—only to be told at the last minute by the recruiter that they’re cutting costs and can’t afford to hire for the position right now.

I’m genuinely puzzled. Why would a company actively recruit, conduct back-to-back interviews, and even check references, only to later realize they don’t have the budget? If the funding or CEO approval wasn’t locked in, why post the job with a salary range in the first place? Feels like a huge waste of everyone’s time.