Then you can argue why you still need the budget. It May make sense to temporarily allocate a bigger budget immediately to do those things instead of delaying, trying to save.

Congratulations. Your budget is now permanently smaller because your appeals are completely irrelevant to the machine and you get to do less. Forever. Maybe you have to fire some people.

If you don't need a big budget then yes you should continue onwards with a smaller budget. That's not a surprising conclusion.

I believe the intended meaning was "Now, regardless of any future considerations, your budget is permanently smaller.".