Embarking upon a Ruby on Rails development project is an ambitious undertaking, requiring thoughtful attention to a multitude of factors, chief among them being the meticulous crafting of a budget. With Rails as a robust and flexible framework for web development, the costs can be as varied as the projects themselves. This discourse aims to delineate a strategic approach to effectively budgeting for your Ruby on Rails development project.

Ruby on Rails, a cogent server-side web application framework, has seen a rise in popularity due to its emphasis on Convention over Configuration (CoC) and Don't Repeat Yourself (DRY) paradigms. These complex principles, while providing a streamlined development process, introduce an array of cost factors that necessitate strategic budgeting.

Budgeting for a Ruby on Rails project can be likened to the economic concept of opportunity cost. It involves balancing the limited resources at your disposal against your desired outcomes, a reflection of the Pareto efficiency principle. Each decision has a trade-off, with the cost of one choice being the forsaken benefits of the next best alternative. In the context of a Ruby on Rails project, these decisions may pertain to development time, project complexity, team expertise, and functional requirements.

To begin, it is essential to understand the drivers of cost in a Ruby on Rails project. The main cost components include salaries for developers, the complexity and scale of the project, the necessary infrastructure, and ongoing maintenance.

Examining these components closely, we find the Pareto Principle, or the 80/20 rule, holds much relevance. Often, 80% of the costs are driven by 20% of the features. This is a crucial consideration when defining the scope of the project. By focusing on the core, value-driving features, the budget can be allocated more efficiently.

The proficiency of the development team greatly influences the project cost. A team of seasoned developers may command higher salaries but often deliver superior code quality and efficiency, reducing the need for extensive debugging and revision cycles. Conversely, less experienced developers may initially seem cost-effective but could end up costing more due to increased time-to-market and bug correction. This trade-off can be compared to the Law of Comparative Advantage, where the cost efficiency lies not in the absolute cost but in the relative opportunity cost.

Also, infrastructure costs can be significantly reduced by leveraging cloud services, such as Amazon Web Services or Google Cloud. These services offer flexible pricing models, allowing the project to scale its infrastructure needs in tandem with its growth. Assessing these options draws parallels with the economic concept of economies of scale, where the cost per unit decreases with the increase in production.

Finally, budgeting should account for future maintenance and upgrades. This is where the Time Value of Money concept proves helpful. Given the inevitability of software decay over time, allocating funds for future updates in today's terms, adjusted for inflation and interest rates, ensures the project's sustainability.

In conclusion, the task of budgeting for a Ruby on Rails development project is a complex and intricate process. It demands a deep understanding of the project's scope, the team's capability, the available infrastructure, and the need for future maintenance. Like a grand game of economic chess, each decision carries weight and directly impacts the project's success and cost-effectiveness. By approaching budgeting through the lenses of economic and statistical principles, one can navigate this undertaking with greater precision and foresight.