I think when you exceed the budget, you need to get creative. You need to find ways to reduce costs an do a cost of goods reduction exercise. I would advise going to your costing department to see where all the expenses are going. Then, you can try to find areas to reduce costs. For example, you might try to source a cheaper component in your product in an effort to reduce costs. 

It is important for project managers to be flexible in order to be able to successfully manage projects. Flexibility allows for project managers to be able to make tough decisions, particularly in regards to budget. Since medical devices are so complex, many changes occur and different risks may arise that were not originally planned for. A project manager can resolve this predicament by understanding the whole scope of the project and seeing how to rearrange the budget of the project. If there is another component of the project that has a surplus of money, that money can be used to address the risk that arose. It is also important that the project manager does not cut any corners in the project, specifically in a medical device project, in order to ensure that the patient is not at risk when using the device. In cases where the spending exceeds the budget, the project manager may have to request an increase in the budget if there is the proper business justification.