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Under Promise and Over Deliver vs Over Promise and Under Deliver

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Which one is best?  As Harry Hill would say "There is only one way to find out......Fight!"  Under Promise and Over Deliver My initial reaction when I write this is the first, it feels like expectation management 101, by setting a position to stakeholders that you will complete a project on day X knowing that you have some time in the bag or at budget Y with again some financial room to maneuver you are able to delight the sponsor. Right? On the face of it, it seems that this is logical, but there is a little niggle in the back of my mind saying caution.  Whilst done with the right intentions in mind could this backfire?   What if the organisation has limited funds to complete projects?  Your additional budget wriggle room you have created that you think you won't need means that another critical project is not initiated, or worse cancelled partway through with already sunk costs.  Or your safe ...