Decompose complex queries into sub-questions and allocate computational budgets adaptively based on estimated difficulty, achieving 70% accuracy improvements and 39% token reduction without retraining.
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Decompose complex queries into sub-questions and allocate computational budgets adaptively based on estimated difficulty, achieving 70% accuracy improvements and 39% token reduction without retraining.
Plan and Budget: Effective and Efficient Test-Time Scaling on Language Model Reasoning
Core Concept
Plan and Budget addresses the "overthinking" problem in language model reasoning: models generate excessively verbose outputs using computational resources inefficiently. The framework decomposes complex queries into sub-questions with varying uncertainty levels, then allocates tokens adaptively to each sub-problem based on estimated difficulty.
Rather than applying uniform computation across all reasoning steps, the approach identifies which sub-questions require more reasoning effort and concentrates tokens there, while keeping straightforward sub-questions brief. This test-time strategy is model-agnostic and requires no retraining, achieving both higher accuracy and reduced token consumption.
Architecture Overview
Query Decomposition: Break complex questions into simpler, solvable sub-questions
Difficulty Estimation: Predict which sub-questions require more computational effort
Budget Allocation Model (BAM): Distribute token budget across sub-questions based on estimated difficulty
Efficiency-Effectiveness Tradeoff (E3 Metric): Measure combined improvement in accuracy and token efficiency
Dynamic Scheduling: Adapt token allocation in real-time during generation
Model-Agnostic Application: Works with any reasoner without architectural changes
Implementation
The following steps outline how to implement adaptive budget allocation for reasoning:
Decompose the query - Break complex questions into sub-question components
Estimate sub-question difficulty - Assess which parts require more reasoning
Allocate token budget - Distribute available tokens proportionally to difficulty
Generate reasoning - Process each sub-question with allocated token budget
Synthesize answer - Combine sub-question responses into final answer
Measure efficiency - Track accuracy and token usage for optimization
f"""Break down this complex question into simpler sub-questions:
Question: {query}
Sub-questions (numbered list):"""
self
500
self
return
def
_parse_sub_questions
self, response: str
List
str
"""Parse sub-questions from model response."""
'\n'
for
in
if
and
any
for
in
3
# Remove numbering
'0123456789.)-'
if
return
class
DifficultyEstimator
def
__init__
self, estimation_model
self
def
estimate
self, question: str
float
"""Estimate difficulty of a question (0.0 to 1.0)."""
f"""Rate the difficulty of answering this question on a scale 0-1:
- 0 = trivial, direct factual answer
- 0.5 = moderate, requires reasoning
- 1 = very difficult, complex multi-step reasoning
Question: {question}
Difficulty (single number 0-1):"""
self
10
try
float
return
max
0.0
min
1.0
except
return
0.5
# default to moderate
class
BudgetAllocator
def
__init__
self, base_budget: int = 2000
self
def
allocate
self, sub_questions: List[SubQuestion]
List
"""Allocate tokens to sub-questions based on difficulty."""
if
not
return
# Minimum tokens per sub-question
100
sum
for
in
# Avoid division by zero
if
0
len
# Allocate proportionally to difficulty
for
in
int
self
max
return
class
E3Metric
@staticmethod
def
compute
baseline_accuracy: float, optimized_accuracy: float,
baseline_tokens: int, optimized_tokens: int
Poor decomposition: Sub-questions don't capture actual problem structure; validate decompositions
Difficulty miscalibration: Estimated difficulty doesn't match actual reasoning complexity
Budget exhaustion: Token allocation causes some sub-questions to run out of budget mid-reasoning
Synthesis loss: Final answer loses nuance when combining abbreviated sub-question responses
Reference
Plan and Budget achieves up to 70% accuracy improvements and 39% token reduction without retraining. The framework enables smaller models (32B parameters) to match larger models' efficiency. Code is publicly available and the work was accepted to ICLR 2026.
Original paper: "Plan and Budget: Effective and Efficient Test-Time Scaling on Large Language Model Reasoning" (arxiv.org/abs/2505.16122)