The proposal budget is a plan for expenditure of project funds by specified cost categories.
Many agencies provide budget forms or require budgets to be presented in specific formats.
The following points will assist in formulating a budget for submission with a proposal for sponsored funding. Budget items should be determined and cost estimates obtained. Cost estimates listed in budgets should be high estimates to allow for price increases. A realistic budget should be formulated to avoid underestimated or overestimated project costs. An underestimated budget will not increase the probability of award and may not provide adequate funds to cover necessary project expenses.