In order to identify systematically the different expenditures, make sure you list all the activities in the rows of the same (excel) table, where you previously defined of the costs categories. As the budget should be in line with the activities set in the work plan, you should work through the narrative of the proposal identifying all the costs that must be incurred in order to carry out each single activity planned. Listing all the categories in columns in a spreadsheet application, such as excel, will help you to organise your costs.
Subcontracts (services and construction work).consumables and supplies (such as material, pumps, bricks or containers).equipment (such as machinery, measuring instruments and other tools).vehicles (such as rental, petrol, driver’s time).travel costs (such as bus tickets, meal allowance).people (such as researchers, consultants, other partners’ staff-time).Typical categories may be, for example (adapted from PHILIP et al. In case there is not a specific guideline for the development of your budget, the following section will help you to prepare a realistic and well-balanced budget.īefore drawing up the budget, it is necessary to get an overview of the type of inputs needed to achieve the objectives of the project. In fact, the first thing you should do is read the application guidelines carefully so you are sure of what you need to include - or exclude - in your budget. It is therefore imperative to follow the donor’s instructions explicitly. Many sponsors, especially government agencies and international organisations, provide either a form or a format for the budget. In this way, it is possible to determine how closely the actual progress toward achieving the objectives is being made relative to the proposed budget (UNIVERSITY OF VIRGINIA 2010). Secondly, the budget provides a means to monitor the project's financial activities over the life of the project. The sponsoring agencies will use the budget details to determine whether the proposal is economically feasible and realistic. First, it estimates, as realistically as possible, the cost of completing the objectives identified in the project proposal. Generally, the budget has mainly two functions. Considering all different tasks when allocating the budget can be a challenge.
Budget planning process professional#
A professional and transparent approach to budget planning will help convince investors, development banks and national or international donors to make financial resources available (PHILIP et al.
Realistic planning of finances is key to the implementation of a project or programme. In general, it is a prediction of the possible costs that will be incurred by carrying out the activities planned in a project. A budget is defined as patterns of expenditure and revenue over the life of the project (SEAGA 2001).
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