Can beneficiaries incur expenditures from foreseen budget before the EU funded grant project starts?

No. Costs must be related to and generated by activities carried out within the implementation period of the project. However, contract-award procedures may be initiated before the start of the implementation period, in accordance with the rules set forth in Annex IV - procurement. This allows for instance for the signature of a procurement contract before the start of the action in order to be already operational when the action starts. However, the respective costs will have to be generated (i.e. incurred) during the implementation period of the action in order to be eligible.

For Example: 

Signature of a rental contract on 15/12/2020. Action starts 01/01/2021 The rental will be eligible only for the period starting as of 01/01/2021, but the contract can be signed beforehand.

For more information, please check out Companion.