AndrewN
Goes a bit like this:
Before the beancounters will approve a project you have to go for initial funding before precise costs have been calculated. You effectively 'guess' to how much money you need....
In my department, our costs were deemed too expensive, so you bid for what you thought you could get (in my particular case we had only 40% of the budget we knew we needed.......)
No surprises then, when the actual budget went well over the initial costings!
Tail wagging dog.