It's very unclear to me how this is all that different from basically any other means of allocating funds that people use. The only fundamental difference seem

It's very unclear to me how this is all that different from basically any other means of allocating funds that people use. The only fundamental difference seems to be the rate at which you re-evaluate allocations. Conceptually I see how this mitigates the sort of waste described by the OP, but implementing it seems ridiculous. How would you conduct bureaucratic audits in the middle of military operations?