Once you have identified a problem to solve, you must do some more research, then present a solution.
Recommended steps for solving a problem:
These steps are nonlinear and iterative - meaning you may repeat certain steps multiple times (and possibly out of order) before you are finished.
Once you have chosen a solution, you need to propose the action plan - how you intend to accomplish your proposed solution.
Check out these links to find more information about writing a research proposal:
You will not be formulating an actual budget, but you will write a narrative about how much you estimate your proposed solution will cost. You will need to persuasively justify the expenditures.
Check out the links below for more information about writing your budget: