Beginner level · Module 3: Budgets and Data Collection · Lesson 1 of 3
Project Budgets and Tracking
Plan and track spending against activities.
In this lesson you will
- Build an activity-based budget
- Track spending and burn rate
Key concepts
budget linesunit costsactual vs budgetburn rate
The lesson
Build the budget from activities: quantities × unit costs for each line.
Track actual spending monthly against the budget, line by line.
Burn rate compares the share of budget spent with the share of time passed; big gaps signal delays or overspending.
Step by step
- Build the budget from activities.
- Create a tracking sheet.
- Enter sample spending.
- Calculate burn rate.
Is the project spending on track?
Using burn rate at the half-way point to spot delays.
| Item | Working | Amount |
|---|---|---|
| Share of time passed | 6 ÷ 12 | 50% |
| Spent so far | from the tracker | 42,000 USD |
| Share of budget spent | 42,000 ÷ 120,000 | 35% |
| Expected spending at an even pace | 120,000 × 50% | 60,000 USD |
| Behind expected spending | 60,000 − 42,000 | 18,000 USD |
| Unspent at year end if the pace continues | 120,000 − (42,000 ÷ 6 × 12) | 36,000 USD |
Explanation
Spending at 35% of budget after 50% of the time usually means activities are delayed — here, borehole repairs waiting for the dry season.
The project must spend 13,000 USD a month for the rest of the year, against 7,000 so far. Plan the catch-up now and tell the donor early if a no-cost extension or budget change may be needed.
Check your understanding
42,000 ÷ 6 = 7,000 USD a month; (120,000 − 42,000) ÷ 6 = 13,000 USD a month.
Practice activity
Build the budget and tracker for your project.
Expected result: A linked budget and tracker with burn rate.
Check your understanding
-
How is an activity-based budget built?
Show answer
Quantities × unit costs for each activity.
-
What does a low burn rate halfway through a project suggest?
Show answer
Activities are probably delayed.
Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.