Given a directed acyclic graph with timing constraints, the budget management problem is to assigntoeachvertexanincrementaldelaysuchthatthesumofthesedelaysismaximizedwithoutviolatinggiven constraints. We propose the notion of slack sensitivity and budget gradient to demonstrate the characteristics of budget management. We develop a polynomial-time algorithm for the budget management problem, based on the maximum independent set of an established transitive graph. We show the comparison of our approach with the well-known zero-slack algorithm, and extend it to general weighted graphs. Applications to a class of problems in VLSI CAD are also discussed. Key Words. Budget management, Slack assignment, Directed acyclic graphs, Transitive graphs, Maximum independent set, Timing constraints, VLSI CAD.