Me: How does your budget mechanism go by?
Him: Well, it's like fixing a deadline. If I could finish the project in two weeks, I'll inform my superiors that I need three weeks so in case there are more to what I estimate, I'll have the extra week.
Me: In other words, if you put a budget of RM350, you actually mean you want to spend only RM300.
Him: Well. If the amount is slightly higher, we still have extra money to cover this price difference. Say, maybe the price is RM320. But if the price is less than RM300, we can put that extra RM50 in our savings account, or use it for other necessities.
Me: What kind of budget is that?
Him: There are certain situations whereby we might over-estimate.
Me: Mine works differently.
Him: How do you go by then?
Me: You see, there are two kinds of budget.
Him: Which is?
Me: The first kind, is the proposal budget. You ask for more than what you actually need, in case the amount exceeds your estimation.
Him: That's mine right?
Me: Yes. The second one, is when you put the exact or maximum amount you could allow.
Him: Hmm. That is yours?
Me: Yes, because my concern is to spend the money that does not exceed the budget, so you have to make the limit clear to me. In this case, RM350 must means RM350, not RM300.
Him: Where does my mechanism apply?
Me: When I ask for money from you, I'll have to ask for slightly more in case the amount might be higher than what I estimate. So, there might be surplus, there might not be.
Him: A-ha. So I give you the maximum amount that I could allow you to spend?
Me: Something like that.

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