This, at least in some aspects, seems to set people up for a military realm the likes of what everyone on the forum used to complain about concerning Aurvandril(sp?).
I do like some aspects of it, but I would have to suggest capping it to 100% TOTAL.
Example:
50% repairs
25% travel
25% not budgeted towards anything
----------------
100% total
This would allow a sponsor to customize what he wishes to support, without making it some wonderfully overpowered army for wealthy sponsors. This doesn't stop him from just switching percentages after orders to refit, or board ships, or whatever, but it does draw a line. With that said, it might be wise to avoid that sort of behavior by making it so that the funding can only be reallocated once a week; though, this too could be worked around by switching armies.
This model would also encourage specialized armies.
Your realm has an army of newcomers? You might look for heavy budgeting towards training.
Have a long distance campaign army? Have their travel expenses paid for; When they return, set them up for repairs and/or recruitment.
It provides a lot of opportunities, but it would require some new regulations to how sponsors are restrained from switching allocations too often as well, and how frequently you can switch armies.
Alternatively, you could make it a one time established allocation when the army is founded; with existing army sponsors having the option to make the one time change. Even then, though, is costs only a small amount to found a new army.
Overall, as great as the idea sounds, over all it is too hard to properly balance so that a wealthy noble can't just take advantage of the system six ways from Sunday. Not without making some actions an abuse of game mechanics, at least. In my opinion, though, a feature that you have to add a bunch of rules for GMs to enforce in order to keep the balance just isn't moving us anywhere positive.
