1.1 What are the reasons for a budget revision?

Changes are a normal thing as long as they help to better achieve the project results.

It is quite frequent that some beneficiaries ask for budget revision due to savings in budget lines. Savings are NOT a valid reason for a revision of the budget. Budget lines that are not used can simply stay in the budget and be reported as savings in the final financial report.

A real reason for changes could be a need to introduce some new activities that were not initially planned or increase budget for the existing activities based on well justified reasons.

If you decide to increase the existing budget lines be careful that you do not increase the unit rates agreed in the original contract or in the latest addendum. The unit rates should generally remain unchanged as these have been subject to final negotiations of the contract conditions between the Beneficiary and the Contracting Authority.

Increase of unit rates is considered as an exception and must be agreed with the Contracting Authority.

It is advisable that in the application for the action, unit rates are planned at an average level and not at the lowest possible level in order to avoid difficulties during the implementation process as financial situation may be changed.


This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Regional Development Agency West and can in no way be taken to reflect the views of the European Union Office in Kosovo .

Home FAQs I. How do I manage changes in the project budget? 1.1 What are the reasons for a budget revision?