Comment by somat

That's the paradox that causes the problem, perhaps paradox is not the correct term, conflicting view points?.

From above(the manager of the program) the job is to budget the funds thriftily and fairly, each project getting the amount it needs.

From below(the team working on the project) this feels like you are punished if you are able to save money and rewarded when you waste money.

I suspect this is probably the major problem with having a more command orientated economy. While it should be fairer(free market economies are notoriously unfair). The inversion in incentive hurts performance.