Budget Justification
The budget justification may be one of the most important sections of the non-technical proposal. It is a narrative discussion of the project cost categories and related line items presented in the same sequence as they appear on the budget spreadsheet or agency forms. It provides sufficient detail so there is a clear understanding of how costs were calculated and why they are necessary.
For example, in the personnel category, salary and any pay increases, level of effort, Principal Investigator/Project Director and other key personnel qualifications and job responsibilities should be discussed; items of permanent equipment should be discussed with respect to such things as type, make, model, size, cost, etc., and why the purchase is necessary to the successful conduct of the project. The budget justification is often the information used by reviewers and agency officials to determine the level of funding for a proposal.