Padding a Budget

After reviewing your annual budget, the department head asks you to include certain additional items of equipment, which the department badly needs, assuring you that this will not affect the funding for items that you requested.  You see the value of this additional equipment  to the department but have no particular use for it in your own work.  How do you respond to your supervisor's request?

J1G says:  It's pointless to try to pad a budget, because reviewers and program staff review budgets quite closely. If equipment isn't justified for a project, it probably won't be approved in the funded budget.