diff --git a/litellm/proxy/proxy_config.yaml b/litellm/proxy/proxy_config.yaml
index b06faac328..7cb2714f42 100644
--- a/litellm/proxy/proxy_config.yaml
+++ b/litellm/proxy/proxy_config.yaml
@@ -61,6 +61,8 @@ model_list:
 litellm_settings:
   fallbacks: [{"openai-gpt-3.5": ["azure-gpt-3.5"]}]
   success_callback: ['langfuse']
+  max_budget: 0.025       # global budget for proxy 
+  budget_duration: 30d    # global budget duration, will reset after 30d
   # cache: True     
   # setting callback class
   # callbacks: custom_callbacks.proxy_handler_instance # sets litellm.callbacks = [proxy_handler_instance]
diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index b53484b868..1de047cf9a 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -407,9 +407,19 @@ async def user_api_key_auth(
                                 user_max_budget is not None
                                 and user_current_spend is not None
                             ):
+                                asyncio.create_task(
+                                    proxy_logging_obj.budget_alerts(
+                                        user_max_budget=user_max_budget,
+                                        user_current_spend=user_current_spend,
+                                        type="user_and_proxy_budget",
+                                        user_info=_user,
+                                    )
+                                )
+
+                                _user_id = _user.get("user_id", None)
                                 if user_current_spend > user_max_budget:
                                     raise Exception(
-                                        f"ExceededBudget: User {valid_token.user_id} has exceeded their budget. Current spend: {user_current_spend}; Max Budget: {user_max_budget}"
+                                        f"ExceededBudget: User {_user_id} has exceeded their budget. Current spend: {user_current_spend}; Max Budget: {user_max_budget}"
                                     )
                     else:
                         # Token exists, not expired now check if its in budget for the user
@@ -422,6 +432,15 @@ async def user_api_key_auth(
                             user_max_budget is not None
                             and user_current_spend is not None
                         ):
+                            asyncio.create_task(
+                                proxy_logging_obj.budget_alerts(
+                                    user_max_budget=user_max_budget,
+                                    user_current_spend=user_current_spend,
+                                    type="user_budget",
+                                    user_info=user_id_information,
+                                )
+                            )
+
                             if user_current_spend > user_max_budget:
                                 raise Exception(
                                     f"ExceededBudget: User {valid_token.user_id} has exceeded their budget. Current spend: {user_current_spend}; Max Budget: {user_max_budget}"
@@ -448,6 +467,15 @@ async def user_api_key_auth(
 
             # Check 4. Token Spend is under budget
             if valid_token.spend is not None and valid_token.max_budget is not None:
+                asyncio.create_task(
+                    proxy_logging_obj.budget_alerts(
+                        user_max_budget=valid_token.max_budget,
+                        user_current_spend=valid_token.spend,
+                        type="token_budget",
+                        user_info=valid_token,
+                    )
+                )
+
                 if valid_token.spend > valid_token.max_budget:
                     raise Exception(
                         f"ExceededTokenBudget: Current spend for token: {valid_token.spend}; Max Budget for Token: {valid_token.max_budget}"
@@ -1625,11 +1653,12 @@ async def startup_event():
             user_id="default_user_id",
         )
 
-    if (
-        prisma_client is not None
-        and litellm.max_budget > 0
-        and litellm.budget_duration is not None
-    ):
+    if prisma_client is not None and litellm.max_budget > 0:
+        if litellm.budget_duration is None:
+            raise Exception(
+                "budget_duration not set on Proxy. budget_duration is required to use max_budget."
+            )
+
         # add proxy budget to db in the user table
         await generate_key_helper_fn(
             user_id=litellm_proxy_budget_name,
diff --git a/litellm/proxy/utils.py b/litellm/proxy/utils.py
index faa73d70b8..43c61e3975 100644
--- a/litellm/proxy/utils.py
+++ b/litellm/proxy/utils.py
@@ -181,6 +181,62 @@ class ProxyLogging:
                     level="Low",
                 )
 
+    async def budget_alerts(
+        self,
+        type: Literal["token_budget", "user_budget", "user_and_proxy_budget"],
+        user_max_budget: float,
+        user_current_spend: float,
+        user_info=None,
+    ):
+        if self.alerting is None:
+            # do nothing if alerting is not switched on
+            return
+
+        if type == "user_and_proxy_budget":
+            user_info = dict(user_info)
+            user_id = user_info["user_id"]
+            max_budget = user_info["max_budget"]
+            spend = user_info["spend"]
+            user_email = user_info["user_email"]
+            user_info = f"""\nUser ID: {user_id}\nMax Budget: {max_budget}\nSpend: {spend}\nUser Email: {user_email}"""
+        else:
+            user_info = str(user_info)
+        # percent of max_budget left to spend
+        percent_left = (user_max_budget - user_current_spend) / user_max_budget
+        verbose_proxy_logger.debug(
+            f"Budget Alerts: Percent left: {percent_left} for {user_info}"
+        )
+
+        # check if crossed budget
+        if user_current_spend >= user_max_budget:
+            verbose_proxy_logger.debug(f"Budget Crossed for {user_info}")
+            message = "Budget Crossed for" + user_info
+            await self.alerting_handler(
+                message=message,
+                level="High",
+            )
+            return
+
+        # check if 5% of max budget is left
+        if percent_left <= 0.05:
+            message = "5% budget left for" + user_info
+            await self.alerting_handler(
+                message=message,
+                level="Medium",
+            )
+            return
+
+        # check if 15% of max budget is left
+        if percent_left <= 0.15:
+            message = "15% budget left for" + user_info
+            await self.alerting_handler(
+                message=message,
+                level="Low",
+            )
+            return
+
+        return
+
     async def alerting_handler(
         self, message: str, level: Literal["Low", "Medium", "High"]
     ):
@@ -191,6 +247,8 @@ class ProxyLogging:
         - Requests are hanging
         - Calls are failing
         - DB Read/Writes are failing
+        - Proxy Close to max budget
+        - Key Close to max budget
 
         Parameters:
             level: str - Low|Medium|High - if calls might fail (Medium) or are failing (High); Currently, no alerts would be 'Low'.