The budget is the financial plan for your project or program. Ideally, this means you should consider your budget as you are developing the project. This is important for two reasons:
- Developing your budget alongside your narrative assures that the budget items are specifically related to activities described in the proposal.
- Reviewers often examine the budget in the context of the program narrative, evaluate whether sufficient and appropriate personnel to perform the work have been included, and match the overall budget to the work proposed.
Estimating the cost of a research project can be an inherently unpredictable exercise, primarily because the manner in which a research endeavor progresses is itself unpredictable. Experience makes budgeting easier and reasonable estimates are essential, however flexible re-budgeting authority from sponsors (when provided) makes precise estimating less critical.