Government evaluators review hundreds of budgets. They know what developers, equipment, and cloud infrastructure cost. Two mistakes get budgets rejected:
- Inflating — padding numbers doesn't get you more money, it gets you rejected. Evaluators cross-reference the budget against the work plan; inconsistencies are red flags.
- Undershooting — an unrealistically lean budget signals you haven't thought the project through, or you'll run out of money mid-project. Either way, confidence drops.
Budget what you actually need and justify each line. Most Canadian programs cover some mix of salaries (usually the biggest line — include employer CPP/EI/health tax), equipment, materials, and marketing. Watch two things:
- Many programs are matching — they cover a percentage (often 50%), and you fund the rest. Asking for 100% on a 50% program is an automatic rejection. Show your own contribution; it signals commitment.
- Costs incurred before approval are usually ineligible.
The takeaway: a believable, itemized budget that matches your work plan and respects the cost rules beats an inflated one every time.